If the Federal Reserve announces an easing of monetary policy and this move was not expected:
A) It should have no impact on the slope of the yield curve
B) We should expect the yield curve to possibly become inverted
C) The slope of the yield curve would become larger
D) We should expect the yield curve to steepen

Question

Quizplus · Accepted Answer

The Answer of If the Federal Reserve announces an easing of monetary policy and this move was not expected:
A) It should have no impact on the slope of the yield curve
B) We should expect the yield curve to possibly become inverted
C) The slope of the yield curve would become larger
D) We should expect the yield curve to steepen

If the Federal Reserve Announces an Easing of Monetary Policy