An increase in the spread between interest rates

Assignment Help Business Economics
Reference no: EM13834854

An increase in the spread between interest rates on10-year bonds of Italy and Spain and interest rates on 10-year bonds of Germany indicates:

A. An increase in probability of a liquidity trap of italy and spain

B. An increase probability of a liquidity trap in Germany

C. A perception of increasing risk in Italy and Spain

D. A perception of decreasing risk in Italy and Spain

Reference no: EM13834854

Questions Cloud

Relationship between governments budget deficit-spending : The relationship between the government's budget deficit and its spending is:
The unemployment rate will fall if potential output growth : The unemployment rate will fall if potential output growth is:
Effect sequence in response to expansionary monetary policy : Identify the correct cause-and-effect sequence in response to an expansionary monetary policy move by the Fed.
Expansionary monetary policy or easy money policy by fed : Expansionary monetary policy, or an "easy money" policy by the Fed..
An increase in the spread between interest rates : An increase in the spread between interest rates on10-year bonds of Italy and Spain and interest rates on 10-year bonds of Germany indicates:
Calculating robust errors versus-conducting weighted squares : Suppose you detect heteroskedasicity and /or auto correlated errors in your regression. What is the difference between (I) calculating robust errors versus (ii) conducting a weighted least squares or feasible generalized least squares analysis.
According to the theory of rational expectations : According to the theory of rational expectations, individuals will respond to expansionary monetary policy by:
Decreased demand for a countrys exports causes : Everything else held constant, decreased demand for a country's exports causes its currency to ________ in the long run, and increased demand for imports into the country causes its currency to ________.
Decrease in the domestic interest rate : A decrease in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant

Reviews

Write a Review

Business Economics Questions & Answers

  Qsuppose the cfo of an american corporation with surplus

q.suppose the cfo of an american corporation with surplus cash flow has 90 million to invest and the corporation does

  About the regulating monopoly

Regulating Monopoly. Explain how a regulator can reduce the deadweight loss associated with monopoly by setting a price cap in the market. Show what the ideal level of this price cap is, and the resulting inefficiency.

  Actual price level exceeds expected price level reflected

If the actual price level exceeds the expected price level reflected in long-term contracts, real GDP equals __________ and the actual price levels equals _________ in the short run. List three factors that can change the economy’s potential output. ..

  What happen if he goes to market he must feed

What happen if he goes to market, he must feed the horse 50lbs of rice. draw the budget constraint for beans and rice

  Conclude autonomous investment and marginal propensity

Illustrate what will be real interest rate that clears goods market at G = 2000 and Y = 10,000. Conclude autonomous investment and marginal propensity to invest.

  Dominant strategy

Does either firm have a dominant strategy. Is there a stable equilibrium.

  Illustrate what way is per capita gdp a better measure

illustrate what way is Per Capita GDP a better measure of economic well being than GDP. How does this relate to economic problems in the undeveloped world.

  Qwatch the video titled fear the boom and bust using the

q.watch the video titled fear the boom and bust. using the tools of macroeconomics identify the primary difference

  Qin a particular monopoly the demand equation is given by

q.in a particular monopoly the demand equation is given by yp 5p1. what is the price elasticity of demand?2. what is

  Q1 if you are the chief economist of a country experiencing

q1 if you are the chief economist of a country experiencing full employment and high inflation levels over the past

  Markets differ in their demand for the firms product

The following shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost MC: Compare the demand conditions in each market; i.e. how do the two markets diff..

  Where do we go from here we have no been able to say

we haven't been able to say much on theoretical side about private information combined with complementarities.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd