According to the Expectations Hypothesis a Rising Yield Curve Indicates

question 26

Multiple Choice

According to the expectations hypothesis a rising yield curve indicates that investors expect

• A) future short term rates to fall
• B) future short term rates to rise
• C) future long term rates to rise
• D) future long term rates to fall
• E) None of the above.

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Definitions:

Classical Conditioning

The process of learning by continuously combining two stimuli; a response that first originates from the second stimulus ultimately originates from the first stimulus exclusively.

Operant Behavior

Conduct that is governed or impacted by its outcomes, such as incentives or sanctions.

Influences

Factors or agents that have an effect on the development, behavior, or decisions of individuals or systems.

Environment

Every nongenetic influence, from prenatal nutrition to the people and things around us.