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29) True or False: Due to the coronavirus threat, the US government eliminates payroll taxes temporarily. The hope is that people's paychecks will be bigger,
29) True or False: Due to the coronavirus threat, the US government eliminates payroll taxes temporarily. The hope is that people's paychecks will be bigger, and this will lead them to shop and spend more, thus lessening the effect of the coronavirus shock on the economy and financial markets. All things being equal, we should expect interest rates to rise.
30) True or False: A good working description is to say, the yield curve often inverts before recessions, although sometimes inversions happen without a subsequent recession.
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