Suppose the yield on a three-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

Question

Quizplus · Accepted Answer

A normal yield curve, where long-term rates are higher than short-term rates, typically suggests economic growth, not a recession. An inverted yield curve would suggest a recession.

Suppose the Yield on a Three-Month Treasury Bill Is 0