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Economists' attempts to explain the term structure of interestrates illustrate how economists modify theories to improve them whenthey are inconsistent with the empirical evidence. illustrate

  1. Economists' attempts to explain the term structure of interestrates

    illustrate how economists modify theories to improve them whenthey are inconsistent with the empirical evidence.

    illustrate how economists continue to accept theories that failto explain observed behavior of interest rate movements.

    prove that the real world is a special case that tends to getshort shrift in theoretical models.

    have proved entirely unsatisfactory to date.

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