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    Macroeconomics Study Set 10
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    Exam 7: The Asset Market, money, and Prices
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    The Existence of a ________ Means That the Interest Rate
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The Existence of a ________ Means That the Interest Rate

Question 1

Question 1

Multiple Choice

The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two successive one-year bonds.


A) risky asset.
B) securitization premium.
C) term structure.
D) risk premium.

Correct Answer:

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