Question: The ____________ states that because borrowers would rather borrow long term and lenders would rsther lend short term, lomg term interest rates will usually be
The ____________ states that because borrowers would rather borrow long term and lenders would rsther lend short term, lomg term interest rates will usually be higher than short term interest rates. The___________ states that todays term structure/yield curve receals shat people expect interest rates to be in the future.
Answer choices for both questions:
Maturity prefernce theory
Expectations hypothesis
Market segmentation theory
fisher hypothesis
interest rate prediction curve
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