Based on the Expectations Hypothesis,the Steep Upward Sloping Yield Curve

question 64

Multiple Choice

Based on the expectations hypothesis,the steep upward sloping yield curve in June of 2013 indicted that short-term rates would ________ in the future.

• A) climb
• B) fall
• C) remain the same
• D) change in a random fashion

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Definitions:

Starch

A carbohydrate consisting of a large number of glucose units, serving as a major energy source from food.

Gallbladder

A small organ located under the liver, which stores and concentrates bile, a digestive enzyme produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder that aids in the digestion of fats.

Feces

Waste matter discharged from the bowels after food has been digested; excrement.