Describe the theories we discussed in class and what each


1. You observe a flat yield curve. Describe the theories we discussed in class and what each of the theories imply about interest rates in the future.

2. Our economy seems to be improving. If businesses increase their investments in new projects and consumer spending continues to increase, what will likely happen to interest rates in the coming period?

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Financial Management: Describe the theories we discussed in class and what each
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