Question: Which of the following statements is CORRECT? Group of answer choices If individuals increase their savings rate, interest rates are likely to increase. If the
Which of the following statements is CORRECT?
Group of answer choices
If individuals increase their savings rate, interest rates are likely to increase.
If the Treasury yield curve were downward sloping, the yield to maturity on a year Treasury coupon bond would be higher than that on a year Tbill.
An upwardsloping yield curve is often call a "normal" yield curve, while a downwardsloping yield curve is called "abnormal."
Interest rates on longterm bonds are more volatile than rates on shortterm debt securities like Tbills.
Suppose the federal deficit increased sharply from one year to the next, and the Federal Reserve kept the money supply constant. Other things held constant, we would expect to see interest rates decline.
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