Unlike the Segmented Markets Theory,the Expectations Theory Attributes the Slope

question 56

Multiple Choice

Unlike the segmented markets theory,the expectations theory attributes the slope of the yield curve to

• A) tax considerations.
• B) the fact that short-term bonds are not perfect substitutes for long-term bonds.
• C) the market's view of future short-term interest rates.
• D) the variance in the inflation rates over the business cycle.

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