Which of the Following Statements Is CORRECT

question 20

Multiple Choice

Which of the following statements is CORRECT?

• A) The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond.
• B) The yield on a 3-year corporate bond should always exceed the yield on a 2-year corporate bond.
• C) The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond.
• D) If inflation is expected to increase,then the yield on a 2-year bond should exceed that on a 3-year bond.
• E) The real risk-free rate should increase if people expect inflation to increase.

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Definitions:

Suppressed

This term implies that something, such as an expression, activity, or data, has been deliberately withheld, reduced, or inhibited.

Inappropriate Behavior

Actions or conduct that are not suitable or acceptable in a given context or situation.

Itard

Refers to Jean Marc Gaspard Itard, a French physician noted for his work with the "Wild Boy of Aveyron" and contributions to the understanding of human behavior and education.

Time-out

A disciplinary technique in which a person is removed from an environment for a period of time to decrease undesirable behavior.