Here's Why U.S. Treasury Yields Are Plunging

Here's Why U.S. Treasury Yields Are Plunging

Assessment

Interactive Video

Business

University

Hard

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The video discusses the unexpected low treasury yields despite budget deficits, driven by global economic uncertainty and pessimism. It explores the root causes of this pessimism, including political dysfunction and demographic challenges. The video also highlights the US's reliance on debt and the need for strategic fiscal management to prevent future economic issues.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason for the unexpected low levels of treasury yields?

Increased productivity and growth

High levels of global economic certainty

Pessimism about future growth and productivity

Decreased demand for US treasuries

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a short-term factor contributing to economic uncertainty?

High levels of market certainty

Rapid technological advancements

Dysfunctional political system

Stable political environment

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does an aging population affect economic growth?

It poses challenges to achieving growth

It has no impact on growth

It guarantees higher productivity

It makes growth easier to achieve

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk of the US continuing to rely on low borrowing rates?

Increased economic growth

Debt outpacing economic growth

Decreased interest payments

Improved fiscal health

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important for the US to address its fiscal health?

To prevent negative impacts when rates rise

To ensure debt grows faster than the economy

To increase interest payments on debt

To reduce borrowing rates further