What was your understanding of these two graphs about investors' expectations over inflation in the long...
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What was your understanding of these two graphs about investors' expectations over inflation in the long run and short run? Prices were 8.5% higher in March than a year earlier. +14% +12 +10 +8 +6 +4 +2 - 2 '65 Inflation Year-over-year percent change in the Consumer Price Index '70 '75 '80 '85 '90 '95 '00 '05 '10. '15 '20 +8.5% in March +6.5% without food and energy The yield curve between 10y note and 2y T-bill was shown below (inverted briefly): Categories Money, Banking & Finance > Interest Rates > Interest Rate Spreads > 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity (10Y2Y) Observation: 2022-04-12 0.33 (+ more) Updated: 4:01 PM CDT Units: Percent. Not Seasonally Adjusted RED-10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity 1.6 1.4 1.2 1.0. 0.8 0.6 0.4 0.2 0.0 -0.2 2018-09 2019-01 Frequency: Daily 2019-05 2019-09 2020-01 2020-05 IY|SY| 10Y | Max 2018-05-31 to 2022-04-12 the 2020-09 2021-01 2021-05 2021-09 DOWNLOAD EDIT GRAPH O 2022-01 What was your understanding of these two graphs about investors' expectations over inflation in the long run and short run? Prices were 8.5% higher in March than a year earlier. +14% +12 +10 +8 +6 +4 +2 - 2 '65 Inflation Year-over-year percent change in the Consumer Price Index '70 '75 '80 '85 '90 '95 '00 '05 '10. '15 '20 +8.5% in March +6.5% without food and energy The yield curve between 10y note and 2y T-bill was shown below (inverted briefly): Categories Money, Banking & Finance > Interest Rates > Interest Rate Spreads > 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity (10Y2Y) Observation: 2022-04-12 0.33 (+ more) Updated: 4:01 PM CDT Units: Percent. Not Seasonally Adjusted RED-10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity 1.6 1.4 1.2 1.0. 0.8 0.6 0.4 0.2 0.0 -0.2 2018-09 2019-01 Frequency: Daily 2019-05 2019-09 2020-01 2020-05 IY|SY| 10Y | Max 2018-05-31 to 2022-04-12 the 2020-09 2021-01 2021-05 2021-09 DOWNLOAD EDIT GRAPH O 2022-01
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The first graph displays the yearoveryear percent change in the Consumer Price Index CPI which is a ... View the full answer
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