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2 years ago

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.

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Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus

12345 [234]

If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5 = 2%

Capitals contribution = 0.4 × 5 = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

To learn more about capital here:

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8 0

1 year ago

The manager of an orchard expects about 70% of his apples to exceed the weight requirement for ""Grade A"" designation. At least

kenny6666 [7]

Answer:

D) 356

Explanation:

ME = Z x √[(P x Q) / N]

margin of error (ME) = 4%
90% confidence level (Z) = 1.645 (by convention)
P = 70% of apples exceed Grade A
Q = 30% of apples do not exceed Grade A
N = sample size = ?

0.04 = 1.645 x √[(0.7 x 0.3) / N]

0.04 = 1.645 x √(0.21 / N)

0.04 = 1.645 x 0.458 / √N

0.04 = 0.7538 / √N

√N = 0.7538 / 0.04 = 18.84

N = 18.84² = 355.2 ≈ 356 (there is no 0.2 apples, you must round up)

6 0

3 years ago

Glenn sells a piece of equipment used in his business for $31,500 during 2019. The equipment was purchased on July 1, 2017, at a

Schach [20]

Answer:

A gain of $16,100

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.

The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.

Carrying amount

= $22,000 - $6,600

= $15,400

Gain/(loss) on sale of asset

= $31,500 - $15,400

= $16,100

6 0

3 years ago

The sales volume variance is the difference between the: A. static budget (based on planned volume) and actual revenue or cost.

Luda [366]

Answer:

The correct answer is the option A: static budget (based on planned volume) and actual revenue or cost.

Explanation:

To begin with, the name of "Sales volume variance" refers to a method used in the business and accounting field with the main purpose of obtaining the comparison between the planned sales and the actual sales. It does it by stating that the difference between those two multiply by the budget price of the product will result in the variance itself. The goal of this method is to measure the sales performance and to see if there are no mathces with the expected revenues then the company has to take a lead and do something about it.

5 0

3 years ago

Which one of these is not affected by a persons credit score

Vadim26 [7]

The 3rd one is not affected by a persons credit score

5 0

3 years ago

Read 2 more answers