- Which is least accurate? A. Central banks need to ensure that they follow markets rather than quide them. B. Central banks can obtain an assessment of expected interest rates from bond markets. C. Goods and labor markets provide central banks with information about risks to price stability. D. Central banks should clearly communicate their strategies with financial markets and avoid surprises 2. In a country that is experiencing neoclassical growth with increasing savings rate, investors can expect Higher Dividend (Yes/No)? Higher Dividend Growth (Yes/No)? Thx for the help!
A,yes,no
A Yes - No (doubtful about No)
Bump How is B wrong? I thought interest rates drove bond markets. I think I am confusing a relatively easy topic here, but as I have said before, me and economics don’t get along. I know its for sure not C and D. #2 makes sense at yes/no
A. No idea about question 2 - can you explain?
- I think the point is to use the bond markets to estimate existing long-term rates and target these to desired ones. 2) As dividends peak investors should expect a drop soon cause it may be unsustainable to maintain high growth of these at the same time. ------------------------------------------------- Bump How is B wrong? I thought interest rates drove bond markets. I think I am confusing a relatively easy topic here, but as I have said before, me and economics don’t get along. I know its for sure not C and D. #2 makes sense at yes/no