A Steep Upward-Sloping Yield Curve Indicates That Short-Term Interest Rates

question 105

Multiple Choice

A steep upward-sloping yield curve indicates that short-term interest rates are expected to

• A) neither rise nor fall in the near future.
• B) remain relatively unchanged, but that long-term rates are expected to fall.
• C) neither rise nor fall, but that long-term rates are expected to rise moderately.
• D) rise moderately in the near future.

---

Definitions:

Unresolved Childhood Conflicts

Unaddressed and persistent psychological struggles stemming from childhood experiences, often affecting adult behavior and mental health.

Fixation

An obsessive interest or feeling towards a person or idea, or in psychoanalytic theory, a failure to progress beyond a developmental stage.

Oedipus Complex

A psychoanalytic concept that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.

Psychosexual Stage

Stages in Freudian psychoanalysis that map out the development of personality and sexual orientation from childhood through adulthood.