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Which of the following is incorrect?
A. If the expectations hypothesis is true, then the current three-year yield would equal the yield of a two-year bond today plus the expected return on a one-year bond purchased two years from today.
B. If real interest rates are stable (consistent with Irving Fisher's idea), and the expectations hypothesis is true then an upward sloping yield curve implies that the market expects the inflation to fall.
C. Suppose the expectations hypothesis is true and the one year yield is less than the two year yield.
Then the market expects the one year spot rate a year from now to be greater than the current spot rate.
Answer: B
Irving Fisher's idea was that interest rates equal real interest rate plus expected inflation.
That means an upward sloping yield curve would imply that the market expects inflation to rise.

On a machine running several X servers, how are the different instances of the X11 server identified?
A. By the name of the user that runs the X server likex11 :bob.
B. By a device name like/dev/X11/xservers/1.
C. By a unique IPv6 address from thefe80: : /64subnet.
D. By a fixed UUID that is defined in the X11 configuration file.
E. By a display name like: 1.
Answer: E
Section: User Interfaces and Desktops

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