An Inverted Yield Curve Implies That

Multiple Choice

An inverted yield curve implies that:

A) Long-term interest rates are lower than short-term interest rates.
B) Long-term interest rates are higher than short-term interest rates.
C) Long-term interest rates are the same as short-term interest rates.
D) Intermediate term interest rates are higher than either short- or long-term interest rates.
E) none of the above.