Suppose the liquidity preference theory of the term structure of interest rates holds. If the investors expect future short-term rates to stay at the current level, the yield curve is A. upward sloping.
B. downward sloping.
C. flat.
D. hump-shaped.

answer; /// blank(1); increases; blank(2); decreases;

when consumers have more money to pay for a product, the most likely situation to occur from the possible options on the list is (2) an increase in price for computer and computer accessories will happen.

companies tend to price products according to production costs, but they also take into account how much money would a consumer in certain segments be willing to pay for their product. if they have more money, the products would definitely be priced higher.