According to the Pure Expectations Theory, a Flat Yield Curve

question 34

Multiple Choice

According to the pure expectations theory, a flat yield curve means the market

• A)thinks that future interest rates will be higher than current interest rates.
• B)thinks that future interest rates will be lower than current interest rates.
• C)does not know what will happen to future interest rates.
• D)thinks that future interest rates will be exactly the same as current interest rates.

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Definitions:

Mousterian Tool Tradition

The tool industry of the Neandertals and their contemporaries of Europe, Southwest Asia, and North Africa from 40,000 to 125,000 years ago.

Pressure-Flaking

A technique used in stone tool making where materials are shaped by the application of pressure to flake off small pieces.

Multiregional Hypothesis

The hypothesis that modern humans originated through a process of simultaneous local transition from Homo erectus to Homo sapiens throughout the inhabited world.

Recent African Origins Hypothesis

The hypothesis that modern humans are all derived from one single population of archaic Homo sapiens who migrated out of Africa after 100,000 years ago, replacing all other archaic forms due to their superior cultural capabilities; also known as the Eve hypothesis or the out of Africa hypothesis.