11. Yield curve applications Which of the following graphs shows an inverted yield curve? Panel A Panel 8 How do different models explain an inverted yield curve? Check all that apply. It could be good news (lower interest rates strengthen reat estate market) or it could be bad news (central banks have cut interest rates because they are worried about an impending economic slowdown and there are too many homes being built and sold). It could be good news (faster growth) or bad news (higher inflation). It could be good news (savers have uses for funds) or bad news (savers are worried about the future). The economy is headed for a slowdown or a recession. Economic and rinanciat market conditions are not expected to change much at alf over time