If the yield curve was negatively sloped, this would most likely reflect expectations of a combination of future
A)declines in the money supply and income.
B)declines in income and inflation.
C)increases in income and inflation.
D)increases in income and money supply.

Question

Quizplus · Accepted Answer

A negatively sloped yield curve reflects expectations of declining interest rates in the future, which typically corresponds with expectations of declining economic growth and inflation, hence declining income.

If the Yield Curve Was Negatively Sloped, This Would Most