The business cycle refers to the up (expansion) and down (recession) of economic activity over time as measured by real GDP. Briefly, explain how these ups and downs affect the following variables. Show your understanding of how each of these variables move when there is a recession and again when there is economic expansion. Pay attention to what is happening to these variables during this present recession. In addition, a sentence or two explaining why it moves that way.

- General level of interest rates

- Real interest rates

- Yield Curves

- Stock prices

- Bond prices

- Inflation

Answer rating: 100% (QA)

ANSWER C Yield Curves A yield curve is a line that plots yields interest rates of bonds having equal ... View the full answer