If the Interest Rate on Three-Month Treasury Securities Is 6

Multiple Choice

If the interest rate on three-month Treasury securities is 6 percent and the interest rate on ten-year Treasury securities is 4 percent, then

A) the economy has probably just emerged from a recession.
B) the yield curve slopes upward steeply.
C) a recession is likely to occur.
D) the economy is probably in the middle of an economic expansion.