Suppose the yield curve is downward sloping. How should one interpret this particular yield curve?
What will be an ideal response?
Downward sloping yield curve implies that the future expected one-year rate is lower than the current one-year rate.
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When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________
A) rises; decreases; increases B) rises; increases; increases C) rises; increases; decreases D) falls; increases; decreases E) falls; increases; increases
What is multicollinearity? In general, how would you know if you had a problem with multicollinearity, and how could you correct it?
What will be an ideal response?
The price of a basket of goods and services in the U.S. is $600 . In Canada the same basket of goods costs 700 Canadian dollars. If the nominal exchange rate were 1.2 Canadian dollars per U.S. dollar, what would be the real exchange rate?
a. 700/600 b. 600/700 c. 700/720 d. None of the above is correct.
A decrease (leftward shift) of the aggregate supply curve will ______ the level of output and ______ the price level.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase