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Question
The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond, and investors have no preference for short-term bonds relative to long-term bonds.A. segmented markets theory
B. expectations theory
C. liquidity premium theory
D. separable markets theory
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
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D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
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B. banks.
C. over-the-counter markets.
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
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