Multiple Choice
Under the preferred habitat theory, a flat yield curve indicates that investors expect future short-term rates to
A) fall.
B) rise.
C) remain constant.
D) either fall or remain constant.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q4: Suppose that information costs fall with respect
Q5: Investors often pay professional analysts to gather
Q6: The flight to quality during the early
Q7: Under the preferred habitat theory the shape
Q8: Unlike the segmented markets theory, the expectations
Q10: Interest and capital gains are taxed differently
Q11: The segmented markets theory<br>A)has difficulty explaining why
Q12: Default risk arises from the fact that<br>A)borrowers
Q13: Suppose the private bond rating agencies ceased
Q14: If lenders anticipate no changes in liquidity,