Which of the following yield curves generally implies a normal healthy economy?

Question

Quizplus · Accepted Answer

A positive slope yield curve, where long-term interest rates are higher than short-term ones, generally indicates a normal healthy economy as it implies that investors expect higher economic growth and inflation in the future. This leads to higher borrowing costs for longer-term investments, which is reflected in the higher long-term interest rates.

Which of the Following Yield Curves Generally Implies a Normal