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Interest rates have a direct impact on the mortgage curve, as changes in interest rates can cause the curve to shift up or down. When interest rates rise, the mortgage curve tends to shift upward, leading to higher mortgage rates for borrowers. Conversely, when interest rates fall, the mortgage curve shifts downward, resulting in lower mortgage rates for borrowers.
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How is yield curve used in finance?
A yield curve is a graph that shows the relationship between yield and maturity on bonds. The graph plots the time or maturity on the x-axis and the yield on the y-axis. The yield curve will show how the yield on the bond changes with varying maturities.
Aggregate demand curve?
a graphed line showing the relationship between the aggregate quantity demanded and the average of all prices as measured by the implicit GDP price deflator.
What is the relationship between long run average cost curve and short run average ciost curve?
The relationship between these two curves is that a long run average cost curve consists of several short run average cost curves, each of which refers to a particular scale of operation. both curves are u shaped the short run avg cost curve rising because of labour specialisation and better spreading of fixed costs and it rises due to the law of diniminshing returns. the long run avg cost curve falls because of economies of scale and rises because of dis-economies. the long run avg cost curve must comprise of all the lowest points of each of the short run avg cost curve because no firm will operate at a level of higher costs in the long run than in the short run. the long run avg cost curve must always be equal to or lie below any short run avg cost curve because in the long run all factors of production can be variable.
What is a coupon bearing bond?
A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any interest.
How do you calculate risk free rate?
A risk free rate can be calculated using the Svensson method of estimating an interest curve based on published interest data points from central banks.Essentially, the interest curve is then used to discount a standardized constant cash flow over time and calculate the risk free rate from its present value. A detailed discussion of the method can be found the IDW.de website.Pre-calculated risk-free rates based on the Svensson method are available at www.quaestorial.com. They include audit-proof documentation in PDF format.
The supply curve shows the relationship between what?
the supply curve shows the relationship between
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
What is the relationship between total cost curve and variable cost curve?
estimated cost
The supply curve shows the relationship between?
Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.
A curve showing the relationship between temperature and time for a given amount of liquid heated a constant rate is a what curve?
The curve showing the relationship between temperature and time for a given amount of liquid heated at a constant rate is called a "heating curve." This curve is mapped out on a graph.
What curve shows the relationship between the sales price and quantity is called the demand curve?
supply
The short term aggregate supply curve represents the relationship between what?
The short term aggregate supply curve represents the relationship between the price level and the quantity of real GDP that firms are willing to supply in the economy. It shows the level of output that firms can produce in the short run at different price levels.
What factors influence the relationship between the total demand for output and the aggregate demand curve?
Several factors can influence the relationship between total demand for output and the aggregate demand curve. These factors include changes in consumer spending, investment levels, government spending, and net exports. Additionally, factors such as interest rates, inflation, and overall economic conditions can also impact the aggregate demand curve.
What is the relationship between marginal utility curve and demand curve?
both are equal and complement to each other
Term for relationship between price and quantity supplied?
Demand Curve
What relationship does the aggregate demand curve show between the quantity of real GDP demanded and other economic factors?
The aggregate demand curve shows the relationship between the quantity of real GDP demanded and factors like price levels, interest rates, and government spending. It illustrates how changes in these factors can affect the overall demand for goods and services in the economy.
What is the meaning of pure yield curve?
A pure yield curve is a theoretical concept that represents the relationship between interest rates and time to maturity with zero-risk assumptions. It is free from factors such as default risk, liquidity risk, and tax implications, providing a clear view of the term structure of interest rates.
