apecon Prod Poss Curve (PPC) ppt
... – As long as both goods that a society makes are desirable then more is better – A bigger pie is better than a smaller pie. Economic Strength is sometimes measured by the size of the Pie – e.g. China is a world economic power because of its economic size despite the fact the slices are ...
... – As long as both goods that a society makes are desirable then more is better – A bigger pie is better than a smaller pie. Economic Strength is sometimes measured by the size of the Pie – e.g. China is a world economic power because of its economic size despite the fact the slices are ...
Economics Web Newsletter - McGraw Hill Higher Education
... spending. Meanwhile, the economy's spare capacity has diminished, productivity growth has slowed, and the dollar has dropped, so inflation risks have risen. "The period we've been through has been unusual enough that we knew the direction and that we had some ways to go, so it was easier to offer th ...
... spending. Meanwhile, the economy's spare capacity has diminished, productivity growth has slowed, and the dollar has dropped, so inflation risks have risen. "The period we've been through has been unusual enough that we knew the direction and that we had some ways to go, so it was easier to offer th ...
2 - Houston Investors Association
... • They feel employment is what it should be but it is not • The inflation rate is still stable • Political pressure ...
... • They feel employment is what it should be but it is not • The inflation rate is still stable • Political pressure ...
Finance 360 Problem Set #5 Solutions
... paid on deposits plus various administrative expenses equal to 5% of the loans created) a) Suppose that the bank charges nothing in fees. Solve for the profit maximizing interest rate. What are the banks monthly profits? b) Calculate the interest elasticity of loan demand at the profit maximizing po ...
... paid on deposits plus various administrative expenses equal to 5% of the loans created) a) Suppose that the bank charges nothing in fees. Solve for the profit maximizing interest rate. What are the banks monthly profits? b) Calculate the interest elasticity of loan demand at the profit maximizing po ...
Fixed Income in a Rising Rate Enviornment
... Interest rates reflect the cost of borrowing over time. Many factors affect interest rates, including the real cost of funds; inflation expectations; preference for shorter-term, more liquid securities; investor risk appetite and supply/demand balance. These factors can have different effects on sho ...
... Interest rates reflect the cost of borrowing over time. Many factors affect interest rates, including the real cost of funds; inflation expectations; preference for shorter-term, more liquid securities; investor risk appetite and supply/demand balance. These factors can have different effects on sho ...
Nuveen High Yield Municipal Bond Fund
... Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the fund, are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. C ...
... Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the fund, are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. C ...
Click here for the LONG version of the 4th Quarter Newsletter
... higher and higher almost every day. Some analysts suspect that the late gains in 2016 were so strong that they may have eaten into some expected equity gains for 2017. The Dow Jones Industrial Average may have not hit the elusive 20,000 mark, but it closed out the year 2016 at 19,762.60 on December ...
... higher and higher almost every day. Some analysts suspect that the late gains in 2016 were so strong that they may have eaten into some expected equity gains for 2017. The Dow Jones Industrial Average may have not hit the elusive 20,000 mark, but it closed out the year 2016 at 19,762.60 on December ...
1 Problem
... curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2 M P and M = 1, 500. 1. If the economy is initially in long-run equilibrium, what are the values of P and Y ? 2. What is the velocity of money in this case? 3. Suppose because banks start paying interest on checking accounts, the agg ...
... curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2 M P and M = 1, 500. 1. If the economy is initially in long-run equilibrium, what are the values of P and Y ? 2. What is the velocity of money in this case? 3. Suppose because banks start paying interest on checking accounts, the agg ...
Fixed Income in a Rising Rate Environment
... • Is there enough income to offset the price decline? Role of Specific Market Conditions Historical analysis is an objective way to understand how fixed-income investments typically respond to rising rates. To simplify the analysis, a rising rate period is when the Federal Reserve is tightening. Th ...
... • Is there enough income to offset the price decline? Role of Specific Market Conditions Historical analysis is an objective way to understand how fixed-income investments typically respond to rising rates. To simplify the analysis, a rising rate period is when the Federal Reserve is tightening. Th ...
Recent Beveridge Curve
... ‘free entry’ condition: Jobs are created up to the point where the marginal vacancy has zero value. Implies that fewer vacancies are created per unemployed worker when the future wages promised to workers are higher given demand. ► The bargaining outcome: Workers and employers share the surplus valu ...
... ‘free entry’ condition: Jobs are created up to the point where the marginal vacancy has zero value. Implies that fewer vacancies are created per unemployed worker when the future wages promised to workers are higher given demand. ► The bargaining outcome: Workers and employers share the surplus valu ...
Speech - Bank of England
... over the sample period he considered; bond yields look to be more variable than reasonable forecasts of future short-term interest rates. Economists have therefore presumed that asset markets are prone to “time-varying risk premia”. In the case of bond markets, these would take the form of variation ...
... over the sample period he considered; bond yields look to be more variable than reasonable forecasts of future short-term interest rates. Economists have therefore presumed that asset markets are prone to “time-varying risk premia”. In the case of bond markets, these would take the form of variation ...
Understanding the Correlation between Cap Rates and
... currently observed in real estate markets. Using the yields on 10-year Treasury bonds as a starting point, we can estimate a “spread” or the incremental difference in returns expected from an investment in commercial real estate over returns from risk-free bonds. This spread should compensate invest ...
... currently observed in real estate markets. Using the yields on 10-year Treasury bonds as a starting point, we can estimate a “spread” or the incremental difference in returns expected from an investment in commercial real estate over returns from risk-free bonds. This spread should compensate invest ...
Yield curve
In finance, the yield curve is a curve showing several yields or interest rates across different contract lengths (2 month, 2 year, 20 year, etc...) for a similar debt contract. The curve shows the relation between the (level of) interest rate (or cost of borrowing) and the time to maturity, known as the ""term"", of the debt for a given borrower in a given currency. For example, the U.S. dollar interest rates paid on U.S. Treasury securities for various maturities are closely watched by many traders, and are commonly plotted on a graph such as the one on the right which is informally called ""the yield curve"". More formal mathematical descriptions of this relation are often called the term structure of interest rates.The shape of the yield curve indicates the cumulative priorities of all lenders relative to a particular borrower, (such as the US Treasury or the Treasury of Japan) or the priorities of a single lender relative to all possible borrowers. With other factors held equal, lenders will prefer to have funds at their disposal, rather than at the disposal of a third party. The interest rate is the ""price"" paid to convince them to lend. As the term of the loan increases, lenders demand an increase in the interest received. In addition, lenders may be concerned about future circumstances, e.g. a potential default (or rising rates of inflation), so they offer higher interest rates on long-term loans than they offer on shorter-term loans to compensate for the increased risk. Occasionally, when lenders are seeking long-term debt contracts more aggressively than short-term debt contracts, the yield curve ""inverts"", with interest rates (yields) being lower for the longer periods of repayment so that lenders can attract long-term borrowing.The yield of a debt instrument is the overall rate of return available on the investment. In general the percentage per year that can be earned is dependent on the length of time that the money is invested. For example, a bank may offer a ""savings rate"" higher than the normal checking account rate if the customer is prepared to leave money untouched for five years. Investing for a period of time t gives a yield Y(t).This function Y is called the yield curve, and it is often, but not always, an increasing function of t. Yield curves are used by fixed income analysts, who analyze bonds and related securities, to understand conditions in financial markets and to seek trading opportunities. Economists use the curves to understand economic conditions.The yield curve function Y is actually only known with certainty for a few specific maturity dates, while the other maturities are calculated by interpolation (see Construction of the full yield curve from market data below).