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AysviL [449]
3 years ago
13

What are the options

Social Studies
1 answer:
Stolb23 [73]3 years ago
8 0
Of whattt?there is nth their
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Which of the following is an assumption of the pure expectations hypothesis? a. The maturity risk premium is positive. b. Treasu
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Answer:

c. The maturity risk premium is zero.

Explanation:

Pure expectation theory states that the forward rate will represent expected future rate. Term structure is said to be a reflection of what the market expects future short term rates to be.

As future rates are expected to be the same as spot rates for that date, the theory is only applicable when there is no risk premium. That is the maturity risk premium is zero.

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a) It takes a condition to be the effect of something that has happened only after the condition already existed.

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A senator, near the end of his first six-year term and running for reelection, made the claim: "Citizens of our state are thriving. While national unemployment levels have remained high, our state unemployment rate has been at astonishingly low levels for eleven years running. Clearly, everyone in our state has benefitted from the economical packages I have introduced during my time in the Senate. Therefore, grateful citizens of our state ought to vote for my second term."

This argument is most vulnerable to what criticism? It takes a condition to be the effect of something that has happened only after the condition already existed.The senator's argument says that the condition which is low unemployment in the state is the effect of his economic packages, but the condition existed before he ever had the chance to introduce those packages. That is the major flaw of this argument.

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i have a book so i know it right the government did not thing he ran away from the atkkt

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