Question
A downward sloping yield curve means that investors expect A)short-term interest rates to rise. B)short-term interest rates to fall. C)Inflation rates to rise. D)long-term bonds
A downward sloping yield curve means that investors expect
A)short-term interest rates to rise.
B)short-term interest rates to fall.
C)Inflation rates to rise.
D)long-term bonds to be less risky than short-term bonds.
E)none of the answers are correct. Yield curves are always upward sloping.
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