Unlike the Segmented Markets Theory,the Expectations Theory Attributes the Slope

question 56

Multiple Choice

Unlike the segmented markets theory,the expectations theory attributes the slope of the yield curve to

• A) tax considerations.
• B) the fact that short-term bonds are not perfect substitutes for long-term bonds.
• C) the market's view of future short-term interest rates.
• D) the variance in the inflation rates over the business cycle.

---

Definitions:

Synaptic Cleft

The small gap at the junction between neurons, through which neurotransmitters are released to transmit signals from one neuron to another.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Axon Terminal

The endpoint of an axon where neurotransmitters are released to signal the next neuron.

Synaptic Vesicles

Small sacs within presynaptic nerve terminals that store neurotransmitters, which are released into the synaptic cleft during neurotransmission.