What the yield curve shows — interest rates across different bond maturities

What an inverted yield curve signals — short-term rates exceed long-term, often predicts recession

Inverted yield curve typically signals an impending economic recession

What a dividend yield measures — annual dividend divided by share price

Dividend yield measures the percentage of annual dividend relative to the current share price

What raising interest rates does — makes borrowing more expensive, slows spending and inflation

Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation

What the risk-free rate represents — return on a theoretically riskless investment (Treasury bills)

The risk-free rate is the return on investments with minimal risk, like Treasury bills

What the Phillips curve shows — inverse relationship between unemployment and inflation

The Phillips curve illustrates the inverse relationship between unemployment and inflation rates

What the debt-to-income ratio measures — monthly debt payments divided by gross monthly income

Debt-to-income ratio measures monthly debt payments as a percentage of gross monthly income