Yield Curve Studies of the Yield Spread Between Long-Term and Short-Term

Multiple Choice

Yield curve studies of the yield spread between long-term and short-term government securities are being used to predict:

A) The probability of a recession
B) The near-term growth in Gross Domestic Product (GDP)
C) The size of government budget deficits
D) Choices A and C only
E) Choices A and B only