What does a downward yield curve says about the condition of the economy?

What role do interest rates play in consumer spending and savings, and how do central banks use interest rate adjustments to influence economic activity?

If government spending were increased, what would occur to interest rates

What are the goals of monetary policy? Which goal is the most important or the principal goal?

Many countries have policies that limit how much interest a moneylender can charge on a loan. Do you think these limits are a good idea? Who benefits from the laws and who loses? What are likely to be the long-term effects of such laws? Tips:  For part 2, you may think about how a low interest rate would affect the poor and those who owe huge debts. For part 3, you may think about how it would affect the profitability of the banking sector and the supply of lending (will lenders be encouraged to lend more?), and what implications it may have for "credit rationing" (being credit constrained).

Briefly outline how each of the following theories explain the shape of the yield curve.A. Liquidity preference theoryB. Expectations theoryC. Preferred habitat theoryD. Market segmentation theory

Changes in the money supply affect the interest rate through changes in the supply of loans, real GDP, the price level, and the expected inflation rate. True or False: The price-level effect describes the change in the interest rate due to a change in the expected inflation rate. False INTEREST RATE True The following graph shows the supply and demand curves in the market for loanable funds. Consider an increase in the expected inflation rate. Show the effect of this increase by dragging one or both curves on the graph. SLE QUANTITY OF LOANABLE FUNDS The income effect DLF The liquidity effect The expectations effect PLF SLF Which of the following refer to changes that affect the demand for loanable funds but not the supply? Check all that apply. The price-level effect (?

In 1989 the Government made it legal for banks to offer interest on checking accounts. Before this it was illegal because it could create increased competitiveness between banks and maybe lead to bank failures. Using only the asset market show graphically what we would expect to happen to the quantity of money and the interest rates if it became legal for banks to offer interest bearing checking accounts. What would this do to the overall economy? Why? How would the Federal Reserve (using information from class) stabilize the economy?

the equilibrium real interest rate in some country is quite low. What could be three possible explanations for this situation?

Besides the fact that the rich don't need to spend on big-ticket items like higher education, what does Geoghegan speculate is the reason for why the savings rate is so high in Germany?