Consider the Expectations Theory of the Term Structure of Interest

question 19

Multiple Choice

Consider the expectations theory of the term structure of interest rates. If the yield curve is downward-sloping, this indicates that investors expect short-term interest rates to ________ in the future.

• A) increase
• B) decrease
• C) not change
• D) change in an unpredictable manner

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Definitions:

Generalized Anxiety Disorder

a chronic disorder characterized by excessive, long-lasting anxiety and worry about nonspecific life events, objects, and situations.

Phobias

An intense, irrational fear of specific objects, activities, or situations.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.