Which of the following statements is false?
A)the A major determinant in the long run of the volume of savings is the level of national incometaxes.
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 indicates that the central bank is tightening the monetary policy to control inflation, which may not be perceived as conductive to future economic expansion. Additionally, a downward sloping yield curve (inverted yield curve) is often considered to be a predictor of economic recession rather than expansion.

Which of the Following Statements Is False