Use the Following Figure to Answer the Question

question 51

Multiple Choice

Use the following figure to answer the question :
-The mound-shaped yield curve in the figure above indicates that short-term interest rates are expected to

• A)rise in the near-term and fall later on.
• B)fall moderately in the near-term and rise later on.
• C)fall sharply in the near-term and rise later on.
• D)remain unchanged in the near-term and fall later on.

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Definitions:

Tariff

Tax on an imported good.

International Trade

The exchange of goods, services, and capital across international borders or territories, influencing global economic activity.

Sugar

A sweet-tasting crystalline substance obtained from various plants, primarily sugar cane and sugar beet, used as a sweetener in food and drink.

Producer Surplus

The difference between the actual price a producer receives for a product and the minimum price they would accept.