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For Which of the Following Situations Would the Yield Curve

Question 248

Multiple Choice

For which of the following situations would the yield curve most likely predict that a recession will occur?


A) short-term interest rate = 2%; long-term interest rate = 4%
B) short-term interest rate = 0%; long-term interest rate = 5%
C) short-term interest rate = 3%; long-term interest rate = 3%
D) short-term interest rate = 4%; long-term interest rate = 3%

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