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Yield curves change daily to reflect

A. changing conditions in the money and capital markets.

B. new inflation expectations.

C. changing conditions in the overall economy.

D. All of the options

1 Answer

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Final answer:

Yield curves change daily to reflect changing conditions in the money and capital markets, new inflation expectations, and changing conditions in the overall economy.

Step-by-step explanation:

The correct answer is D. All of the options. Yield curves change daily to reflect changing conditions in the money and capital markets, new inflation expectations, and changing conditions in the overall economy. The supply and demand of a currency, domestic interest rates, the stock market, and the gold standard can all impact the yield curve.

For example, if there is an increase in demand for a currency, it could lead to higher interest rates and a steeper yield curve. On the other hand, a decrease in supply could lead to lower interest rates and a flatter yield curve.

Overall, the yield curve is a reflection of various factors in the financial markets and the economy as a whole.

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