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Bas_tet [7]
1 year ago
15

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

Business
2 answers:
choli [55]1 year ago
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]1 year 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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A surplus exists in a market if​
SCORPION-xisa [38]

Answer:

A surplus exists in a market if​ the supply happens to be excessive

Explanation:

In a situation where there is surplus, this shows that the quantity supplied is more than the quantity demanded which would allow to incur low sales hence; there would be reduction in price in order to avert such and increase the demand.

8 0
3 years ago
Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvest
noname [10]

Answer:

The correct option is (A) price; reinvestment

Explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

4 0
2 years ago
What does an income statement show about a bank over a period of time?
Natali5045456 [20]
Reliability because it shows that you are responsible to pay
6 0
3 years ago
Read 2 more answers
Hope receives an $18,500 scholarship from State University. The university specifies books, supplies, and equipment, while $10,0
irga5000 [103]

Answer:

Hope's gross income = $5000 + $10,000 = $15,000

Explanation:

First, we need to highlight what are qualified education expenses especially for tax-free fellowships and scholarships.

Specifically, the qualified expenses that will be tax exempt will be

The tuition and fees which are requirements to go to an eligible school or institution

Other course related expenses required for courses in such institutions such as books equipment and supplies are also tax exempt.

<u>However, room and board, research travel and other expenses that are not required for courses in the institution are not tax free</u>

Based on this analysis:

Hope's initial earning on campus = $5000

However, $10,000 spent on room and board are not required for enrolment in the school, hence, it will be added to the earnings to make the gross income

Hope's gross income = $5000 + $10,000 = $15,000

5 0
3 years ago
A. Suppose the wages of computer-factory workers rises. This will cause (the supply / the demand) of tablet computers to (shift
Mars2501 [29]

Answer:

Supply, shift in , rise fall

the demand, shift in, fall ,fall

supply , shift out fall, rise

the demand , shift out rise rise

the demand shift in fall fall

Explanation:

If the wages of factory worker increases, it becomes more expensive to hire workers, the cost of production increases and the demand for labour would fall. as a result, production would fall and the supply of tablets would fall. a decrease in supply leads to an inward shift of the supply curve. as a result of the fall in supply, quantity would fall and there would be a rise in price.

Substitute goods are goods that can be used in place of another good. If the price of notebooks falls, it becomes cheaper to purchase notebooks, so the quantity demanded of notebooks would rise and the demand for tablets would fall since it is cheaper to buy a tablet. the demand curve for tablets would shift in as a result of the fall in demand. As a result, price and quantity of tablets would fall.

Increase in the number of manufactures would lead to an increase in supply. this would cause a rise in the supply of tablets. when there is a rise in supply, the supply curve shifts out, prices fall and quantity increases.

the new game would increase demand for tablets because people would be interested in playing the game. as a result of the rise in demand, the demand curve would shift out, the quantity would rise and prices would rise

A complement is a good that is consumed together with another good. if the price of apps rise, it would become more expensive to buy apps as result the demand for tablets would fall. the demand curve would shift in and price and quantity would fall

6 0
3 years ago
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