Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The yield curve slopes downward when the term spread is positive.
B) Researchers suggest that the smaller the term spread, the higher the chance is of a recession in the coming year.
C) The yield curve slopes upward when the term spread is negative
D) Researchers suggest that the larger the spread, the higher the chance is of a recession in the coming year.