An inverted yield curve is:
A) upward sloping.
B) flat.
C) downward sloping.
D) humped.
E) U-shaped.

Question

Quizplus · Accepted Answer

An inverted yield curve is a downward sloping yield curve in which short-term interest rates are higher than long-term interest rates. This is a rare phenomenon but is considered a warning sign for an economic recession as it is often an indication of decreased confidence in the long-term economic outlook.

An Inverted Yield Curve Is