If inflation becomes expected, and all other things remain as they were, the yield curve would most likely become:
A)steeper.
B)flatter
C)flat.
D)vertical.

Name: If inflation becomes expected, and all other things remain as they were, the yield curve would most likely become: A)steeper. B)flatter C)flat. D)vertical.
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Question

Quizplus · Accepted Answer

If inflation becomes expected, long-term interest rates would likely increase more than short-term rates, causing the yield curve to become steeper.

If Inflation Becomes Expected, and All Other Things Remain as They