Use the table for the question(s)below.
Suppose the term structure of interest rates is shown below:
-What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
A)Inverted;Higher
B)Normal;Higher
C)Inverted;Lower
D)Normal;Lower

Question

Use the table for the question(s)below.
Suppose the term structure of interest rates is shown below: 
-What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
A)Inverted;Higher 
B)Normal;Higher 
C)Inverted;Lower 
D)Normal;Lower

Quizplus · Accepted Answer

An inverted yield curve suggests that investors expect future interest rates to be lower, often due to anticipated economic slowdown or recession.

Use the Table for the Question(s)below