2. Looking at the January 2020 yield curve, which of the following is true? a Investors expect an increase in the interest rate by the Fed since the curve is upward-sloping in the long run b Investors don't expect any change in interest rates by the Fed since the yield curve is flat in the short run c Investors expect the Fed to cut interest rates so that inflation is higher in the longer run d Investors expect the Fed to increase interest rates to increase real growth rate in the long run e None of the above 3. Comparing the yield curve of January 2019 and July 2019, what happened to the investors' expectation of real growth rate (r) and inflation rate ( ª) in the near future?
2. Looking at the January 2020 yield curve, which of the following is true? a Investors expect an increase in the interest rate by the Fed since the curve is upward-sloping in the long run b Investors don't expect any change in interest rates by the Fed since the yield curve is flat in the short run c Investors expect the Fed to cut interest rates so that inflation is higher in the longer run d Investors expect the Fed to increase interest rates to increase real growth rate in the long run e None of the above 3. Comparing the yield curve of January 2019 and July 2019, what happened to the investors' expectation of real growth rate (r) and inflation rate ( ª) in the near future?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please provide the answer and explanation for part 2 and 3
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