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Author Question: Suppose the yield curve is downward sloping. How should one interpret this particular yield curve? ... (Read 111 times)

chandani

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on: Jun 30, 2018
Suppose the yield curve is downward sloping. How should one interpret this particular yield curve?
 
  What will be an ideal response?

Question 2

What is the difference between saving and savings?
 
  What will be an ideal response?


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heinisk01

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Downward sloping yield curve implies that the future expected one-year rate is lower than the current one-year rate.

Answer to Question 2

Saving is the part of after-tax income that one does not spend. It is a flow variable. Savings is used as a synonym for wealth. It is a stock variable.


chandani

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Reply 2 on: Jun 30, 2018
Gracias!

at

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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