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

Q: recession?  What does the effect of that action have on (1) inflation and (2) economic growth,…

A: An economic slowdown known as a recession is characterized by a fall in GDP, a rise in unemployment,…

Q: This change causes savers to supply of loanable funds demanded, there is quantity of loanable funds…

A: In the scenario presented, increasing the tax rate on interest income from 20% to 25% will have an…

Q: What are the objectives of monetary policy? and what are the goals of monetary policy in harmony or…

A: Monetary policy is defined as the process by which central bank of the country and manage supply of…

Q: If there is a rise in the real interest rate, how does the quantity of loanable funds demanded…

A: In the loanable funds market, loanable funds are demanded by the firms or businesses because it is…

Q: Many countries have policies that limit how much interest a moneylender can charge on a loan. Do…

A: Interest rate is considered as the borrowing cost because the person who is borrowing money has to…

Q: Besides the fact that the rich don't need to spend on big-ticket items like higher education, what…

A: The term "savings rate" refers to the proportion of income that is saved rather than spent on…

Q: Which of the following is an appropriate monetary policy to combat a negative GDP gap?   a. raise…

A: An expansionary monetary policy increases money supply in the economy while a contractionary…