Question
According to the liquidity premium and preferred habitat theories of the term structure of interest rates a flat yield curve indicates that A. future short-term
- According to the liquidity premium and preferred habitat theories of the term structure of interest rates a flat yield curve indicates that
A. future short-term interest rates are expected to stay the same.
B. future short-term interest rates are expected to rise.
C. future short-term interest rates are expected to fall.
D. bondholders no longer prefer short-term bonds to long-term bonds.
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
