This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the yield curve is downward sloping. How should one interpret this particular yield curve? ... (Read 164 times)

chandani

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


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
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

  • Member
  • Posts: 541
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

T4T

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

The oxygen isotope curve illustrates the ratio between 16O and 18O. The oxygen isotope curve illustrates the ratio between 16O and 18O.
Titration curve for aspartic acid Titration curve for aspartic acid
The Kuznets Curve The Kuznets Curve
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
The age-of-onset curve for Huntington disease (HD) The age-of-onset curve for Huntington disease (HD)
Video: Stimulus (introduction)

For a complete list of videos, visit our video library