Multiple Choice
Which of the following is true of the yield curve?
A) The yield curve is steep and is upward sloping when the recession ends and the economy starts to recover.
B) The yield curve is flat and is downward sloping when the recession ends and the economy starts to recover.
C) The yield curve is flat or inverted when the term premium is small.
D) The yield curve is downward sloping when the term premium is large.
Correct Answer:
Verified
Correct Answer:
Verified
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