The Nelson-Siegel Model Is Extended to What Is Known as the Nelson-Siegel-Svensson

question 17

Multiple Choice

The Nelson-Siegel model is extended to what is known as the Nelson-Siegel-Svensson model. The primary additional property that is added by this extension is:

• A) It allows the curve to have a double hump.
• B) It increases the smoothness of the fitted curve.
• C) It mathematically simplifies the earlier model.
• D) It adds an additional name to the moniker of the model.

---

Definitions:

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Dollar Spent

A unit of expenditure, often used to discuss the impact or value of spending in terms of economic activity or investment.

Marginal Utility

The increase in satisfaction or useful value obtained from the consumption of yet another unit of a good or service.

Milkshakes

A sweet, cold beverage made from blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.