The Preferred Habitat Theory Holds That the Shape of the Yield

question 58

True/False

The preferred habitat theory holds that the shape of the yield curve is determined by investors' expectations of future interest rates.

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Definitions:

Operant Conditioning

A training technique where the vigor of a conduct is adjusted by the use of reinforcements or sanctions.

Classical

Relating to traditional concepts, styles, or methods that have been established over a long period.

Organizational Behavior

The study of how individuals and groups act within the constructs of an organization, and the impact these behaviors have on organizational functioning.

Intermittent Reinforcement

A conditioning schedule where a response is only sometimes reinforced, known to significantly increase the rate of response and resistance to extinction.