Why does an inverted yield curve serve as a predictor of a recession?.

2 answers:

3 0

An inverted curve reflects the bond market's expectation for the Fed to cut rates down the line. The Fed normally cuts rates in response to an economic downturn, hence why an inverted curve could be a recession signal.

andre [41]2 years ago

3 0

Answer:The Fed normally cuts rates in response to an economic downturn

The Treasury yield curve normally slopes upward. An inverted curve reflects the bond market's expectation for the Fed to cut rates down the line. The Fed normally cuts rates in response to an economic downturn, hence why an inverted curve could be a recession signal.

You might be interested in

BuiltRite Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment

alexira [117]

Terminal cash flow = $281,a hundred + $60,000 = $341,one hundred.

Terminal cash flows are cash flows at the end of the challenge after all taxes are deducted. In different phrases, terminal coins flows are the net amount made by the organization after disposing of the asset and necessary amounts are paid. these are calculated after the disposal of assets and all different amounts are paid (fees, taxes, and many others.).

The calculation of NPV encompasses many economic topics in a single component: cash flows, the time fee of cash, the cut price rate over the period of the undertaking (generally the weighted common fee of capital (WAAC)), terminal value, and salvage fee.

For the terminal cost to be significant it should be discounted to the existing use of a discount fee. The terminal cost is added to the prevailing value of an asset's cash flows within the years preceding it to calculate the full gift cost.

Learn more about Terminal cash flow here: brainly.com/question/24179665

#SPJ4

5 0

2 years ago

Sunland Company had the following account balances at year-end: Cost of Goods Sold $60,410; Inventory $15,010; Operating Expense

charle [14.2K]

Answer and Explanation:

The journal entry is shown below:

Cost of goods sold Dr $2,650 ($15,010 - $12,360)

To Inventory $2,650

(Being the cost of goods sold)

By recording this we debited the cost of good sold as it increased the expenses and credited the inventory as it decreased the assets so that the correct recording and posting could be done

5 0

3 years ago

The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125

natima [27]

Answer:

D. 76.6 %

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

<em>First Calculate the Contribution</em>

Contribution = Sales - Variable Costs

= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)

= $744,000 - $174,000

= $570,000

<em>Then Calculate Contribution Margin Ratio</em>

Contribution Margin Ratio = $570,000 / $744,000 × 100

= 76.61290

= 76.6 % ( 1 decimal)

5 0

3 years ago

List of marketing collateral needed for new territory

Masja [62]

Consider your objective generate more leads, demonstrate thought leadership, increase online visibility, close a sale, create brand awareness and provide customer education. know your budget and what you can spend and what you can't spend understand your customer

5 0

3 years ago

A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an ann

alekssr [168]

$\sqrt\frac{2*773*28}{33}$ Answer: