An Inverted Yield Curve Is a Valuable Forecasting Tool Because

Multiple Choice

An inverted yield curve is a valuable forecasting tool because:

A) the yield curve usually is inverted so it reflects a growing economy.
B) the yield curve seldom is inverted and can signal an economic slowdown.
C) investors are expecting higher short-term rates in the future, and this usually signals an economic slowdown.
D) inverted yield curves signal better economic times are expected.