Which of the following statements is false?
A)the major determinant in the long run of the volume of savings is the level of national income.
B)the money market involves obtaining and trading of credit and debt instruments with maturity of one year or less.
C)bond risk premiums follow changes in investor optimism/pessimism about expected economic activity.
D)A high interest rate level but downward sloping yield curve is generally perceived as being conductive to future economic expansion.

Question

Quizplus · Accepted Answer

A high interest rate level but downward sloping yield curve is actually perceived as a sign of upcoming economic slowdown or recession, as it indicates that investors expect interest rates to drop in the future.

Which of the Following Statements Is False