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:

Interposition

A visual cue in which one object partially blocks another, indicating depth perception in visual field.

Perceptual Set

A psychological framework or expectation that significantly influences one’s perception of sensory information.

Psychokinesis

The supposed ability to move objects by mental effort alone.

Retinal Disparity

The difference in visual images that each eye perceives because of the eyes’ different positions, contributing to depth perception.