When the Yield Curve Is Downward-Sloping

question 81

Multiple Choice

When the yield curve is downward-sloping,

• A)short-term yields are higher than long-term yields.
• B)long-term yields are higher than short-term yields.
• C)the bond market is anticipating the U.S. Treasury may default on its obligations.
• D)the inflation rate is expected to rise.

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Definitions:

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Seligman

Martin Seligman is a psychologist who played a key role in the development of positive psychology, focusing on topics like optimism, resilience, and well-being.

Operant Behavior

A response made by an individual that is followed by certain consequences, influencing the likelihood of the behavior occurring again.

Martin Seligman

A psychologist known for his work on the theory of learned helplessness and his contributions to positive psychology.