This topic contains a solution. Click here to go to the answer

Author Question: Suppose the yield curve is downward sloping. How should one interpret this particular yield curve? ... (Read 69 times)

chandani

  • Hero Member
  • *****
  • Posts: 541
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?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

heinisk01

  • Sr. Member
  • ****
  • Posts: 329
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

  • Member
  • Posts: 541
Reply 2 on: Jun 30, 2018
Excellent


6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

For a complete list of videos, visit our video library