2. If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is

According
to the segmented markets theory of the term structure

If
the expected path of one-year
interest rates over the next five years is 4 percent, 5 percent, 7  


percent,
8 percent, and 6 percent, then the expectations theory predicts that
todayʹs
interest rate  


on
the five-year
bond is

Typically,
yield curves are

Bonds
with relatively low risk of default are called ________ securities
and have a rating of Baa  


(or
BBB) and above; bonds with ratings below Baa (or BBB) have a higher
default risk and are  


called
________.

)
Which of the following statements are true?

Which
of the following statements are true?

An
increase in default risk on corporate bonds ________ the demand for
these bonds, but  


________
the demand for default-free
bonds, everything else held constant.

The
spread between the interest rates on bonds with default risk and
default-free
bonds is  


called
the

When
the growth rate of the money supply increases, interest rates end up
being permanently  


lower
if

In
Keynesʹs
liquidity preference framework, if there is excess demand for money,
there is