Use the table for the question(s)below.
Suppose the term structure of interest rates is shown below:

-What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
A)inverted; higher
B)normal; higher
C)inverted; lower
D)normal; lower
E)flat; unchanged

Question

Use the table for the question(s)below.
Suppose the term structure of interest rates is shown below:
 
-What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
A)inverted; higher 
B)normal; higher 
C)inverted; lower 
D)normal; lower 
E)flat; unchanged

Quizplus · Accepted Answer

An inverted yield curve suggests that investors expect future interest rates to be lower, often due to anticipated economic slowdown or recession.

Use the Table for the Question(s)below