Question F

Following the election of President Trump, the United States stock markets saw an immediate increase (although not in every industry), if this increase had been sustained how would this relate to the Business Cycle Expansion. Explain your answer using the concepts of demand for bonds, quantity of bonds and the interest rates?

Question G

What is the basic difference between the Expectations Hypothesis and Liquidity Premium Theory? Which has a higher interest rate in a normal market?

Question I

If you see a steep upward slope of the yield curve, are short term rates expected to rise or fall?