Yield curve inversion occurs when
A) short-term rates are rising faster than long-term rates
B) long-term rates are rising faster than short-term rates
C) short-term rates equal long-term rates
D) T-bill rates are less than government bond rates

Question

Quizplus · Accepted Answer

Yield curve inversion occurs when short-term interest rates rise above long-term interest rates, often due to short-term rates increasing faster than long-term rates.

Yield Curve Inversion Occurs When