Which of the following yield curves would be characteristic during a period of high economic growth?

Question

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During a period of high economic growth, the demand for credit is high as businesses and individuals expand their operations. This increases the demand for borrowing, which leads to a higher short-term interest rate. The yield curve is upward sloping as the yield on long-term bonds reflects the expectation of future inflation and interest rates, which are usually higher during periods of high economic growth.

Which of the Following Yield Curves Would Be Characteristic During