When yield curves are flat
A)long-term interest rates are above short-term interest rates.
B)short-term interest rates are above long-term interest rates.
C)short-term interest rates are about the same as long-term interest rates.
D)medium-term interest rates are above both short-term and long-term interest rates.

Question

Quizplus · Accepted Answer

Flat yield curves indicate that short-term interest rates are about the same as long-term interest rates. This means that investors are not expecting significant changes in monetary policy or inflation in the near future.

When Yield Curves Are Flat