According to the liquidity premium theory, what does a flat yield curve indicate?
A) Short-term interest rates are expected to remain stable.
B) Short-term interest rates are expected to rise.
C) Short-term interest rates are expected to fall.
D) Long-term interest rates are expected to fall.
C
Economics
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There is a positive relationship between the demand for loanable funds and the real interest rate
Indicate whether the statement is true or false
Economics
In two-part pricing with identical consumers, a firm at least
A) charges a lump-sum fee equal to the producer surplus. B) sets unit price equal to marginal cost. C) cannot maximize profit compared to single-price monopoly pricing. D) Both A and B.
Economics