41. The principle of the time value of money basically says that ________.

A. because firms pay managers a great deal, managers need to use their time very effectively

B. money received today is more valuable than money received in the future because money in the future is more risky

C. because of the principaldashagent problem, investors cannot trust that money firms promise to pay in the future will ever arrive

D. money received today is more valuable than money received in the future because firms and individuals can invest money they have today and earn a return on that money

51.

Suppose the expectations hypothesis is true. If the yield curve is flat this means that ________.

A.

investors do not expect interest rates to change in the future

B.

investors expect interest rates to rise in the future

C.

investors expect interest rates to fall in the future

D.

investors do not require a premium for expected inflation