A near zero value for this quantity may signify a liquidity trap.
The term structure of this quantity is plotted on the yield curve, which is the subject of the expectations hypothesis. This quantity's parity names a condition in which the differential between a country's forward exchange rate and another country's spot exchange rate makes it such that no arbitrage occurs. Two companies may transition from fixed to floating forms of this quantity or vice versa using this quantity's namesake "swap" derivative. The "zero lower bound" problem occurs when a form of this quantity is at or near (*) zero. This quantity is plotted against income level in the IS-LM curve. The "risk-free" version of this quantity is a useful input in pricing stock options. A near zero value for this quantity may signify a liquidity trap. The "real" form of this quantity is set equal to the "nominal" form minus inflation rate in the Fisher equation. For 10 points, name this quantity that denotes how much you must pay to borrow money.
The term structure of this quantity is plotted on the yield curve, which is the subject of the expectations hypothesis.
interest rate