Suppose the yield on a three-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%.This yield curve suggests the economy is headed for recession.

Question

Quizplus · Accepted Answer

The yield curve is not necessarily indicative of an impending recession. In this case, the yield curve is upward sloping, which is generally viewed as a healthy sign for the economy. Additionally, a 2.7% yield on the 10-year Treasury note is not unusually low or a sign of impending economic problems.

Suppose the Yield on a Three-Month Treasury Bill Is 0