Which of the Following Is a Possible Outcome of a Negative

Multiple Choice

Which of the following is a possible outcome of a negative or low term spread?

A) A low of negative spread may indicate higher short-term interest rates in the future.
B) A low or negative spread may cause the yield curve to slope upward.
C) A low or negative spread may reduce lending by banks.
D) A low or negative spread may indicate the early stages of economic expansions.