a)The following graph depicts the slope of the yield curvefor the US (the difference in yields of 10 years and 2years bonds).

a)The following graph depicts the slope of the yield curvefor the US (the difference in yields of 10 years and 2years bonds). Explain what market expectation sregarding future short term nominal interest rates as revealed by this curve (especially when compared against the last 3-4 years). Provide a discussion of relevant theories in support of your explanations

b)Given that the graph above shows an almost flat yield curve (slope close to zero), what lessons can we draw for future expected inflation and economic growth in the US?Explain your answers

 
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