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What is the relationship between the yield curve and the economy?

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The yield curve is a curve that depicts several interest rates for several loan periods (1 year, 5 years, 15 years, 20 years, 30 years, etc.) for the same loan to a particular borrower. The yield curve is significant to the international economy because the yield curve indicates the economic position of each country and which currency will dominate the international economy when a government issues bonds.

The slope...

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