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See the Treasury yield curve from June 2 0 1 3 in the following table: . At the time, some were concerned about whether the
See the Treasury yield curve from June in the following table: At the time, some were concerned about whether the Federal Reserve's stimulus activities would lead to higher inflation. Based on the yield curve, can you tell whether the bond market was concerned about inflation? Explain.
If the bond market were particularly concerned about inflation, it would be reflected in much longterm nominal rates which would have to reflect real rates plus future inflation While longterm rates are certainly than shortterm rates, they are still quite by historical standards, so there a lot of inflation expectation built inSelect from the dropdown menus.
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