RB

Ronnie Brokenberry

Answers

RB

Answered

Which of the following types of businesses would have the highest labor costs in proportion to other costs?

A) auto parts manufacturer
B) Mississippi River barge transport company
C) nursing home
D) chicken-processing plant
E) nuclear energy plant

On Sep 27, 2024


C
RB

Answered

In the early 1980s, the Treasury yield curve had a severe downward slope with short-term yields near 20% and long-term yields below 15%. Explain how such a pattern might occur.

On Sep 23, 2024


The downward slope occurs because the expected inflation premium is declining. The decline in the inflation premium is significant enough to overcome the interest rate risk premium.