If investors expect stable rates of inflation in t
If investors expect stable rates of inflation in the future, the pure expectations theory suggests that the yield curve is currently:
A. upward sloping.
B. flat.
C. inverted.
参考解答
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2024-11-14 21:47:36
Ans:B;B is correct because pure expectations theory states that the yield for a particular maturity is an average of the short-term rates that are expected in the future. If the short-term rates are expected to be stable in the future, the yield curve will be flat.
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