Using taxes and spending to control the level of GDP in the short run is known as
_________ policy.
short- and long-term interest rates usually move in the same direction. Yield curve is often upward, so, long-term interest rates are usually higher than short-term interest rates. short-term interest rates are often more fluctuating than long-term rates.
Higher
financial manager generally borrows short-term
lower interest rates..
To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.
short- and long-term interest rates usually move in the same direction. Yield curve is often upward, so, long-term interest rates are usually higher than short-term interest rates. short-term interest rates are often more fluctuating than long-term rates.
Macroeconomics Question: What would happen to real short term interest rates if the Fed kept short term market interest rates at zero and deflation occurred and was expected to continue?
lower interest rates
Higher
financial manager generally borrows short-term
When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.
lower interest rates..
To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.
long-term rates higher than short-term
The term structure of interest rates is often referred to as a yield curve. It shows the relative level of short-term and long-term interest rates at a point in time. Knowledge of changing interest rates and interest rate theory is extremely valuable to corporate executives making decisions about how to time and structure their borrowing between short- and long-term debts. the yield curve indicates the movements of interest rates. For example, a downward curve indicates that the interest rate will fall in the future. these signals help firms to manage their debt structure.
lower interest rates
lower interest rates