An inverted yield curve
A)slopes up.
B)is flat.
C)slopes down.
D)has a U shape.

Name: An inverted yield curve A)slopes up. B)is flat. C)slopes down. D)has a U shape.
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Question

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An inverted yield curve slopes down, indicating that short-term interest rates are higher than long-term interest rates. This is considered a predictor of an upcoming recession as it suggests that investors are more interested in the short-term safety of their investments rather than long-term growth potential.

An Inverted Yield Curve