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2. While reporting that the yield curve at the time was nearly flat, a newspaper article once asserted that yield curves normally slope up and
2. While reporting that the yield curve at the time was nearly flat, a newspaper article once asserted that yield curves "normally" slope up and that the then current flat shape reflected an anticipated decline in interest rates and inflation. a. Why might yield curves "normally" slope up as asserted? b. Assuming that it is, indeed, normal for a yield curve to slope up, is it correct to assert that a flat yield curve signals a decline in nominal interest rates? Explain
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