According to the Liquidity Preference Hypothesis, Yield Curves Generally Slope

question 42

Multiple Choice

According to the liquidity preference hypothesis, yield curves generally slope upward because

• A) investors prefer short maturity obligations to long maturity obligations.
• B) investors prefer long maturity obligations to short maturity obligations.
• C) investors prefer less volatile long maturity obligations.
• D) investors prefer more volatile short maturity obligations.
• E) None of these are correct.

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Definitions:

Form W-2

An annual form issued by employers to each employee, reporting the employee's yearly wages and the amount of taxes withheld from their paycheck.

Federal Unemployment Taxes

Taxes imposed on employers to fund the federal government's oversight and support of state unemployment insurance programs.

Employer

An individual or organization that hires and pays for the services of employees in exchange for their labor.