According to the Segmented-Market Hypothesis a Rising Yield Curve Indicates

question 34

Multiple Choice

According to the segmented-market hypothesis a rising yield curve indicates that

• A) demand for long term bonds has fallen and demand for short term bonds has fallen.
• B) demand for long term bonds has risen and demand for short term bonds has fallen.
• C) demand for long term bonds has fallen and demand for short term bonds has risen.
• D) demand for long term bonds has risen and demand for short term bonds has risen.
• E) none of the above.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total product by the number of units of input, used to measure productivity.

Construction Company

A construction company is a business entity that deals with the building, remodeling, maintenance, and demolition of structures, such as homes, offices, and other buildings, employing a range of skilled and unskilled laborers.

Employee

An individual who is hired to provide services to a company on a regular basis in exchange for compensation.

Fixed

Refers to costs that do not vary with the level of output or production, like rent or salaries.