A Downward-Sloping Yield Curve That Indicates Generally Cheaper Long-Term Borrowing

question 33

Multiple Choice

A downward-sloping yield curve that indicates generally cheaper long-term borrowing costs than short-term borrowing costs is called ________.

• A) normal yield curve
• B) inverted yield curve
• C) flat yield curve
• D) linear yield curve

---

Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces.

Personal Income Tax

A tax that governments impose on individuals based on their earnings or income.

Top Marginal

Refers to the highest tax rate applied to the last dollar of taxable income in a progressive tax system.

Federal Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the federal government, which varies based on income level and filing status.