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Meaning of expectations hypothesis | Babel Free

Noun CEFR B2

Definitions

The proposition that a long-term interest rate is determined purely by current and future expected short-term rates, so that the expected final value of wealth from investing in a sequence of short-term bonds equals the final value of wealth from investing in long-term bonds.

CEFR level

B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.
See all B2 English words →

See also

expectative expectative grace Expected expected date of confinement expected value Expectedly

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