Explain why an inverted yield curve is a valuable forecasting tool?
What will be an ideal response?
An inverted yield curve is a valuable forecasting tool because it predicts a general economic slowdown. Even if short-term rates were expected to remain constant, the yield curve would slope upward. So an inverted yield curve signals an expected decrease in short-term interest rates.
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Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
a. How can I communicate more effectively? b. What is the difference between artificial intelligence and emotional intelligence? c. How can government officials get themselves re-elected to office? d. What is the correlation between race and class? e. How do people use limited resources to try to satisfy unlimited wants?
Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
Which of the following is not true concerning economic growth?
A. It can be sustained in the short run but not the long run. B. It means that the production possibilities have expanded. C. It's the result of more resources or better technology. D. It is an increase in real GDP.
Based upon a Keynesian viewpoint, to stimulate the economy the government should do all of the following except
A. Make more money available. B. Buy more output. C. Employ more people. D. Raise taxes.