Question: What relationship does the TERM STRUCTURE OF INTEREST RATES (shown in the yield curve) for an economy depict/indicate? Explain. What is the normal shape and
What relationship does the TERM STRUCTURE OF INTEREST RATES (shown in the yield curve") for an economy depict/indicate? Explain.
What is the "normal" shape and level of the yield curve?
What influences short-term and long-term rates (respectively)? (H) What is the current shape of the yield curve in financial markets?
Is this showing the typical long-term average shape and level? If not, what has caused a major structural shift in the U.S. Treasury yield curve?
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