Which of the following yield curves would be present during a period of high economic growth?
A) Upward sloping
B) Downward sloping
C) Horizontal
D) Humped

Question

Quizplus · Accepted Answer

During a period of high economic growth, there is a higher demand for credit, leading to an increase in short-term interest rates. This results in an upward sloping yield curve, where long-term interest rates are higher than short-term interest rates. This indicates that investors expect higher inflation and higher growth in the future.

Which of the Following Yield Curves Would Be Present During