Use the Following Figure to Answer the Question

question 67

Multiple Choice

Use the following figure to answer the question :

-The U-shaped yield curve in the figure above indicates that the inflation rate is expected to

• A)remain constant in the near-term and fall later on.
• B)fall sharply in the near-term and rise later on.
• C)rise moderately in the near-term and fall later on.
• D)remain constant in the near-term and rise later on.

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Definitions:

Fiscal Period

A specific time frame, usually a year, used for accounting purposes and preparation of financial statements.

Payroll

The total amount paid to employees for a certain period.

Salary Expense

The total amount paid to employees as salaries over a period of time, representing a liability for services received by the business.

Fees Payable

Liabilities or amounts owed by a company for services rendered by others, not yet paid at the balance sheet date.