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Pepsi [2]
3 years ago
14

What are the three main transmission mechanisms by which the yield curve affects the economy

Business
1 answer:
Travka [436]3 years ago
4 0

The three main transmission mechanisms through which the economy is been affected as a result of yeild curve are:

<em>Corporate impact</em>

<em>global impact</em>

<em>consumer impact</em>

<em />

  • The yield curve can be regarded as  graph which shows how  the yield that comes from  debt instruments vary with respect to  their years remaining to maturity. This debt instrument could be bond.

  • The monetary transmission mechanism can be regarded as the process whereby asset prices as well as general economic conditions are been affected due to monetary policy decisions

The transmission that affect the economy are

  1. Corporate impact
  2. global impact
  3. consumer impact

  • All these transmission all have effect on the  aggregate demand as well as interest rates, and amounts of money in the economy

Therefore, transmission mechanisms have serious effect on the economy.

Learn more at:

brainly.com/question/15073261?referrer=searchResults

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