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Consider two countries Armenia and Belarus. Assume the yield curve of Armenia is sharply upward sloping while the yield curve of Belarus is sharply downward
Consider two countries Armenia and Belarus. Assume the yield curve of Armenia is sharply upward sloping while the yield curve of Belarus is sharply downward sloping.
Based only on the shape of their respective yield curve, what conclusions can you draw regarding the economic outlook of each country? Explain briefly using the relationship between short-term and long-term interest rates.
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