Expected Rate of Inflation
What is the Expected Rate of Inflation. Illustrate the term.
Expert
Expected Rate of Inflation:
• When investors believe that inflation will be raising in the future, the yield curve will be upward sloping as long-term interest rates will enclose a bigger inflation premium than short-term interest rates.
• When investors believe inflation will be subsiding in the future, the current yield curve will be downward sloping.
What determines the intersection of demand and supply curves?
Types of elasticity of supply: There are five kinds of elasticity of supply:1. Perfectly elastic supply: Q : Inelastic demand over relevant price While rate hikes will boost a utility's total revenue, in that case the utility faces: (w) elastic demand over the relevant price range. (x) unitarily elastic demand over the relevant price range. (y) inelastic demand over the relevant price range. (z
While rate hikes will boost a utility's total revenue, in that case the utility faces: (w) elastic demand over the relevant price range. (x) unitarily elastic demand over the relevant price range. (y) inelastic demand over the relevant price range. (z
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