Economists' Attempts to Explain the Term Structure of Interest Rates

question 62

Multiple Choice

Economists' attempts to explain the term structure of interest rates

• A)illustrate how economists modify theories to improve them when they are inconsistent with the empirical evidence.
• B)illustrate how economists continue to accept theories that fail to explain observed behavior of interest rate movements.
• C)prove that the real world is a special case that tends to get short shrift in theoretical models.
• D)have proved entirely unsatisfactory to date.

---

Definitions:

E-coli

E-coli, or Escherichia coli, is a type of bacteria commonly found in the intestines of animals and humans, some strains of which can cause food poisoning.

Offensive Act

An action that is deemed disrespectful, harmful, or insulting towards others, often resulting in negative perceptions or damage to reputation.

Issues Management

The proactive process of identifying, evaluating, and responding to issues and trends that could affect an organization’s relationships with its stakeholders and its reputation.

Crisis Communication

A specialized area of public relations designed to protect and defend an individual, company, or organization facing a public challenge to its reputation.