Determine how increases in the interest rate spread in Figure 1.14 match with recessions in Figure 1.13.

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Determine how increases in the interest rate spread in Figure 1.14 match with recessions in Figure 1.13. Does an increase in the interest rate spread always occur when there is a recession? Does a recession always occur when there is an increase in the interest rate spread? Comment.

Figure 1.13:

1991-1992 2001 2008–2009 1974-1975 1981-1982 -6 -8 1940 1950 1960 1970 1980 1990 2000 2010 2020 Year Percentage Deviat


Figure 1.14:

1900 1920 1940 1960 1980 2000 2020 Year 3. 2. Interest Rate Difference in Percent

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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