Interest rates spreads between long-term and short-term Treasury bills ________.
A)are procyclical
B)are not a good predictor of recessions
C)are a lagging indicator
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Interest rate spreads between long-term and short-term Treasury bills are procyclical, meaning they tend to widen during economic expansions and narrow during recessions.

Interest Rates Spreads Between Long-Term and Short-Term Treasury Bills ________