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What is a yield curve and what information does it provide to the market and investors? In this context, describe the expectations theory of term
What is a yield curve and what information does it provide to the market and investors? In this context, describe the expectations theory of term structure of interest rates. What is the shape of the yield curve currently, and explain what this means, using the expectations theory? Additionally, if the Fed wants to move the longer term segment of the yield curve; for instance, if the Fed wants this longer term part of the curve to be slope higher, what can the Fed do to influence the shape of the curve?
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