Suppose the yield on a 3-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

This yield curve indicates a normal or upward sloping yield curve, which typically suggests a healthy economy. A yield curve would need to be inverted (short-term yields higher than long-term yields) to suggest a possible recession.

Suppose the Yield on a 3-Month Treasury Bill Is 0