What is meant by a direct signal and an indirect signal. Below is the answer I...

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Economics

What is meant by a direct signal and an indirect signal. Belowis the answer I provided. Can you confirm if this answer should bechanged to an indirect signal. And if yes, can you provide anexample for an direct signal?Â Â
A direct signal is a macro indicator that signals directly whatis being measured, An example of a direct signal is if a bankcloses $8,300,000 loans in February and $8,500,00 loans in March.In February the average 30 year fixed rate for a mortgage was3.64%. In March, the average fixed rate was 3.38%. This decreasecan be contributed to the decrease in the Fed Funds rate by TheFederal Reserve Bank. In February the rate was 1.58% and in Marchthe rate was .65%. The fed funds rate is the interest rate thatbanks use to borrower from each other for short term loans. As aresult, this is affects the mortgage interest rates charged bybanks.

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Data analysis is a key aspect in Economics A huge amount of data is collected by various economies and the analysis and interpretation of this data can provide us a future direction of economy This economic data can provide two types of signals 1 Direct signal It directly measures the movement of the variable being monitored See Answer

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