We are most likely to see a recession if interest rates on long-term bonds are _____ and interest rates on short-term bonds are _____.
A) 8%; 6%
B) 5%; 5%
C) 7%; 7%
D) 2%; 4%

Name: We are most likely to see a recession if interest rates on long-term bonds are _____ and interest rates on short-term bonds are _____. A) 8%; 6% B) 5%; 5% C) 7%; 7% D) 2%; 4%
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A recession is often predicted by an inverted yield curve, where long-term interest rates are lower than short-term rates, as seen in option D.

We Are Most Likely to See a Recession If Interest