An Inverted Yield Curve Implies That

question 65

Multiple Choice

An inverted yield curve implies that

• A) long-term interest rates are lower than short-term interest rates.
• B) long-term interest rates are higher than short-term interest rates.
• C) long-term interest rates are the same as short-term interest rates.
• D) intermediate-term interest rates are higher than either short- or long-term interest rates.
• E) None of the options are correct.