Three Theories Have Been Proposed to Explain the Term Structure

question 9

Short Answer

Three theories have been proposed to explain the term structure of interest rates.They are: ________________________,______________________,and ____________________.

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Definitions:

Kahneman and Tversky

Two psychologists known for their work on the psychology of judgment and decision-making, as well as behavioral economics.

Sure Thing

A situation or outcome that is guaranteed or certain.

Risky Gamble

Making a decision that involves a high risk of loss or failure, typically in hope of achieving significant reward or gain.

Anticipatory Semantic Slanting

The deliberate use of language to shape and influence perceptions or expectations of future events.