Which of the Following Statements Is True of the Yield

question 25

Multiple Choice

Which of the following statements is true of the yield curve?

• A)Typically, it changes its shape without shifting up or down.
• B)Typically, it shifts up or down without changing its shape.
• C)Typically, if it shifts up or down it will also change its shape.
• D)It only rarely shifts up or down or changes its shape.

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Definitions:

Self-correction

The process by which an economic variable adjusts back to its equilibrium or normal state after a disturbance, without external intervention.

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, leading to unemployment or underemployment.

Passive Approach

A strategy or policy of non-intervention, allowing market forces to operate with minimal governmental interference.

Economic Policy

Actions taken by governments or central banks to influence the economy, including decisions on monetary policy, fiscal policy, and regulatory measures.