The Three Theories That Economists Have Developed to Explain the Shape

question 32

Multiple Choice

The three theories that economists have developed to explain the shape of the yield curve are

• A)the term premium theory, the pure expectations theory, and the default premium theory.
• B)the pure expectations theory, the term premium theory, and the segmented market theory.
• C)the segmented market theory, the default premium theory, and the inflationary expectations theory.
• D)the pure expectations theory, the inflationary expectations theory, and the term premium theory.

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Definitions:

Learning Terms

Refers to the vocabulary or jargon specific to the field of education and training, used to describe concepts, theories, and practices.

Social Cognition

The study of how people process, store, and apply information about others and social situations.

Self-Regulation

Self-regulation involves individuals controlling their own behavior, emotions, and thoughts towards achieving long-term goals, often requiring self-discipline and cognitive strategies to align actions with personal and professional standards.

Social Cognitive Theory

is a theoretical framework that emphasizes the importance of observational learning, self-efficacy, and social influences on behavior.