Referring to the blue yield curve below, which theories of term structure can be used to explain the segment of the yield curve on the right of the dividing (red) line, taking into account the country's macroeconomic and market conditions?

Referring to the blue yield curve below, which theories of term structure can be used to explain the segment of the yield curve on the right of the dividing (red) line, taking into account the country's macroeconomic and market conditions?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Referring to the blue yield curve below, which theories of term structure can be used to
explain the segment of the yield curve on the right of the dividing (red) line, taking into
account the country's macroeconomic and market conditions?
4.5%
4%
3.5%
3%
2.5%
2Y 4Y
Australia Yield Curve - 5 Mar 2023
Australia Government Bonds
6Y BY 1ΟΥ 12Y
14Y 16Y
Residual Maturity
- Australia (5 Mar 2023)
****
18Y 20Y 22Y 24Y
IM ago
... 6M ago
26Y
28Y 30Y

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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