Explain how an economist could use the slope of the yield curve to analyze the probability that a recession will occur. Explain why the spread may matter.
What will be an ideal response?
The smaller the term spread (the more inverted the yield curve), the greater are the odds of a recession. A smaller term spread may mean that monetary policy is tight and may show that banks will reduce lending, both of which are likely to slow economic growth.
You might also like to view...
________ ensure the integrity and proper functioning of the economic, legal, or financial systems.
A. Gatekeeper functions B. Social functions C. Marketing functions D. Administrative functions
A(n) ________ is a transitional phrase that connects a statement of features with a statement of benefits
Fill in the blanks with correct word
Regulation A offerings can be sold without registration with the SEC only if an offering statement is provided prior to the purchase of the securities
Indicate whether the statement is true or false
A graphic depiction of the break-even point is known as a cost-volume-profit (CVP) chart.
Answer the following statement true (T) or false (F)