Q1 2) Can the slope of yield curve predict future economic growth? Why?3) The following is the plot of term spread between the 10-year and the3-month US Treasury securities in the past decades. Based on yourdiscussion in 2), what is your general prediction (i.e., strong or weak) of theeconomic growth in US in 2023?5.004.003.002.001.000.00-1.00Term spreadпримитиOct-1983Oct-1986Oct-1989Oct-1992Oct-1995Oct-1998Oct-2001Oct-2004Oct-2007Oct-2010Oct-2013Oct-2016Oct-2019Oct-2022

The yield curve in economics can be defined as a curve that depicts the rate of interest that is…

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Can the slope of yield curve predict future economic growth? Why?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

2) Can the slope of yield curve predict future economic growth? Why?
3) The following is the plot of term spread between the 10-year and the
3-month US Treasury securities in the past decades. Based on your
discussion in 2), what is your general prediction (i.e., strong or weak) of the
economic growth in US in 2023?
5.00
4.00
3.00
2.00
1.00
0.00
-1.00
Term spread
примити
Oct-1983
Oct-1986
Oct-1989
Oct-1992
Oct-1995
Oct-1998
Oct-2001
Oct-2004
Oct-2007
Oct-2010
Oct-2013
Oct-2016
Oct-2019
Oct-2022

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