Economists' Attempts to Explain the Term Structure of Interest Rates

question 62

Multiple Choice

Economists' attempts to explain the term structure of interest rates

• A)illustrate how economists modify theories to improve them when they are inconsistent with the empirical evidence.
• B)illustrate how economists continue to accept theories that fail to explain observed behavior of interest rate movements.
• C)prove that the real world is a special case that tends to get short shrift in theoretical models.
• D)have proved entirely unsatisfactory to date.

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Definitions:

Anticipatory Repudiated

Anticipatory Repudiation occurs when one party to a contract indicates they will not fulfill their contractual obligations before they are due to perform.

Breach Of Contract

The violation of any agreed-upon terms or conditions in a contract without lawful excuse.

Breach Of Contract

The failure to perform as specified in a contract without a legitimate legal excuse.

Commercial Impracticability

A principle where performance under a contract is deemed unduly burdensome due to unforeseen events, relieving the obligated party.