标题: Question from Volume 2 exam [打印本页] 作者: busprof 时间: 2013-4-8 17:44 标题: Question from Volume 2 exam
An economist has forecast that the term structure of interest rates will remain perfectly flat. According to the liquidity preference theory, the economist’s forecast implies that future shortterm interest rates will:
A. decrease over time.
B. increase over time.
C. equal current shortterm interest rates.
I thought the correct answer would be B, but it’s not? Please explain.作者: chandsingh 时间: 2013-4-8 17:45
I’m still really confused? Is it because they’re talking about shortterm future rates rather than longterm?作者: ishfaque 时间: 2013-4-8 17:46
