If the Yield Curve Begins to Rise Sharply, It Is

question 24

Multiple Choice

If the yield curve begins to rise sharply, it is usually an indication that

• A) stocks are offering low returns as the economy enters a recession.
• B) inflation rates have peaked and are about to decline.
• C) bond prices are expected to increase.
• D) inflation is starting to increase, or is expected to do so in the near future.

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Definitions:

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, leading to a steady rate of response.

Fixed Ratio

In operant conditioning, a schedule of reinforcement where a response is reinforced only after a specified number of responses.

Latent Learning

Latent learning is the subconscious retention of information without reinforcement or immediate application, which becomes evident when a specific situation triggers it.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which in turn affects the likelihood of that behavior being repeated.