Have stock dividends become a more important source of income to U.S. households? Plot since 1959 the share of dividend income (FRED code: B703RC1Q027SBEA) in personal disposable income (FRED code: DSPI). Can you explain the 50-year trend?
Answer to relevant QuestionsHow is entering into a forward contract similar to barter? Can you think of costs associated with forward contracts that are minimized or eliminated with futures contracts? How does the existence of derivatives markets enhance an economy’s ability to grow?Basis swaps are swaps where, instead of one payment stream being based on a fixed interest rate, both payment streams are based on different floating interest rates. Why might anyone be interested in entering a ...Central banks occasionally engage in “liquidity swaps” with each other. Plot and interpret the Fed’s provision of dollar liquidity swaps (FRED code: SWPT) to other central banks since 2007. To facilitate your ...During the 1990s, the U.S. Secretary of the Treasury often stated, “a strong dollar is in the interest of the United States.”a. Is this statement true? Explain your answer.b. What can the Secretary of the Treasury ...
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