Which of the following yield curves would most likely predict a downturn in the economy?

Question

Quizplus · Accepted Answer

A yield curve where short-term interest rates are higher than long-term interest rates (inverted yield curve) is typically a sign that investors expect the economy to slow down or even enter a recession in the near future. Choice A shows an inverted yield curve, which would most likely predict a downturn in the economy. Choices B, C, and D all show a normal yield curve.

Which of the Following Yield Curves Would Most Likely Predict