What would happen to the 2-year in 1-year (2Y1Y) future interest rate if the 1-year interest...
What would happen to the 2-year in 1-year (2Y1Y) future interest rate if the 1-year interest rate decreases and the 3-year interest rate increases?
A) The 2Y1Y interest rate will increase
B) The 2Y1Y interest rate will decrease
C) Cannot be determined with the information provided
Homework Answers
Considering the given information on interest rates,
2Y1Y = 3 YEARS/ 1 YEAR
Here if the 3 years interest rate increases the 2Y1Y rate will increase. Also, of the 1 year interest rate decreases the 2Y1Y rate will increase.
Hence, the following would happen if the 2-year in 1-year (2Y1Y) future interest rate if the 1-year interest rate decreases and the 3-year interest rate increases-
A) The 2Y1Y interest rate will increase.
Do let me know in the comment section in case of any doubt.
Add Answer to:
What would happen to the 2-year in 1-year (2Y1Y) future interest
rate if the 1-year interest...
If the price level increases, then which of the following will happen? a. Interest rates will...
If the price level increases, then which of the following will happen? a. Interest rates will increase and hence investment will decrease b. Interest rate will decreases and investment will increase c. Both Interest rate and consumption will increase d. Both Interest rate and investment will decrease
Suppose that the elasticity of demand for a product is 0.5. What will happen to total...
Suppose that the elasticity of demand for a product is 0.5. What will happen to total revenue as a firm increases the price? O A. Total revenue will increase. O B. Total revenue will stay the same O C. Total revenue will decrease. O D. It cannot be determined from the information provided.
For some reason, the expectations for future inflation increases dramatically. what effect would this have on...
For some reason, the expectations for future inflation increases
dramatically. what effect would this have on the loanable funds
market?
A. The demand for loanable funds would increase thus increasing
the interest rate level.
B, The demand for loanable funds would decrease thus increasing
the interest rate level.
C. The Supply for loanable funds would increase thus increasing
the interest rate level.
D. The Supply for loanable funds would decrease thus decreasing
the interest rate level.
2. For some reason,...
5 In the intertemporal model, the real interest rate increases, the following statement is wrong ()...
5 In the intertemporal model, the real interest rate increases, the following statement is wrong () A budget constraint line is steeper B Consumer endowment points change C. The present value of the consumer ’s lifetime wealth decreases D consumers will increase current consumption 6 In the intertemporal model, the effect of increasing real interest rates on lenders is () A Current consumption increases, future consumption increases B. Current consumption decreases, future consumption increases C Current consumption is uncertain, and...
Question 6 The future value of a dollar _________ as the interest rate increases and __________...
Question 6 The future value of a dollar _________ as the interest rate increases and __________ the farther in the future the initial deposit is to be received. A increases, increases B decreases; increases C decreases; decreases D increases; decreases
1. A 10,000 KG truck is traveling at +20 m/s. What would happen to the momentum...
1. A 10,000 KG truck is traveling at +20 m/s. What would
happen to the momentum of the truck if it increases in velocity in
the same direction?
2. A 120 KG rugby player is running toward another player at 5
m/s. How much force needs to be applied over one second in order to
bring him to a stop?
3. if the acceleration of an object decreases, what happens to
the inertia?
A 10,000kg truck is traveling at +20m/s....
Suppose firms fear a recession and expected profits decrease, what will happen in the loanable funds...
Suppose firms fear a recession and expected profits decrease, what will happen in the loanable funds market a. interest rate increases, quantity of loanable funds increases b. interest rate decreases, quantity of loanable funds increases c. interest rate increases, quantity of loanable funds decreases d. interest rate decreases, quantity of loanable funds decreases
1. What will happen to the equilibrium quantity and price of a product in a competitive...
1. What will happen to the equilibrium quantity and price of a product in a competitive market when the increase in demand exactly offsets the decrease in supply? A)Equilibrium quantity will increase and equilibrium price will decrease B)Equilibrium quantity will decrease and equilibrium price will increase C)Equilibrium quantity will increase and equilibrium price will stay the same D)Equilibrium quantity will stay the same and equilibrium price will increase 2. Which statement is not correct? A)If demand increases and supply decreases,...
(2a) How would an increase in the interest rate (i) affect the future value of a...
(2a) How would an increase in the interest rate (i) affect the future value of a sum of money? (2b) How would an increase in the interest rate (i) affect the present value of a sum of money? Explain why this would happen.
2. In each of the following situations, list what will happen to the equilibrium price and...
2. In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good. a. The population increases and the price of inputs increase. b. The price of a complement increases and technology advances. c. The number of firms in the market increases and income increases d. Price is expected to increase in the future e. Consumer preference increases and the price of a substitute in...
Suppose that the elasticity of demand for a product is 0.5. What will happen to total revenue as a firm increases the price? O A. Total revenue will increase. O B. Total revenue will stay the same O C. Total revenue will decrease. O D. It cannot be determined from the information provided.
For some reason, the expectations for future inflation increases
dramatically. what effect would this have on the loanable funds
market?
A. The demand for loanable funds would increase thus increasing
the interest rate level.
B, The demand for loanable funds would decrease thus increasing
the interest rate level.
C. The Supply for loanable funds would increase thus increasing
the interest rate level.
D. The Supply for loanable funds would decrease thus decreasing
the interest rate level.
2. For some reason,...
1. A 10,000 KG truck is traveling at +20 m/s. What would
happen to the momentum of the truck if it increases in velocity in
the same direction?
2. A 120 KG rugby player is running toward another player at 5
m/s. How much force needs to be applied over one second in order to
bring him to a stop?
3. if the acceleration of an object decreases, what happens to
the inertia?
A 10,000kg truck is traveling at +20m/s....
2. In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good. a. The population increases and the price of inputs increase. b. The price of a complement increases and technology advances. c. The number of firms in the market increases and income increases d. Price is expected to increase in the future e. Consumer preference increases and the price of a substitute in...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago