Which of the Following Is True of the Yield Curve

question 52

Multiple Choice

Which of the following is true of the yield curve?

• A)The yield curve is steep and is upward sloping when the recession ends and the economy starts to recover.
• B)The yield curve is flat and is downward sloping when the recession ends and the economy starts to recover.
• C)The yield curve is flat or inverted when the term premium is small.
• D)The yield curve is downward sloping when the term premium is large.

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