A downward-sloping yield curve that indicates generally cheaper long-term borrowing costs than short-term borrowing costs is called ________.

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An inverted yield curve is a downward-sloping curve where long-term borrowing costs are lower than short-term borrowing costs. This is inverse of a normal yield curve where long-term borrowing costs are higher than short-term borrowing costs. A flat yield curve occurs when there is no difference between short and long-term borrowing costs. A linear yield curve is not a commonly used term in finance.

A Downward-Sloping Yield Curve That Indicates Generally Cheaper Long-Term Borrowing