Refer to the Following Figure When Answering the Following Questions

question 120

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 12.3: Yield Curves December 4, 2006 and 2012
-Consider the yield curves in Figure 12.3. The curve for 12/4/2006 is unusual because:

• A) it has no relationship to the real economy.
• B) its short-term interest rates are higher than long-term interest rates.
• C) it is inverted.
• D) it is higher than the yield curve for 2012.
• E) It is not unusual.

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