Economic models and flow-of-funds are two ways of forecasting interest rates.

Question

Quizplus · Accepted Answer

Economic models and flow-of-funds analyses are indeed two methods used by economists and financial analysts to forecast future interest rates. Economic models might incorporate a wide range of variables including inflation expectations, economic growth, and monetary policy, while flow-of-funds analyses focus on the supply and demand for funds in the financial system, which can also influence interest rates.

Economic Models and Flow-Of-Funds Are Two Ways of Forecasting Interest