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a . The yield curve from February 2 0 0 7 slopes downward, meaning interest rates and maturity terms are inversely related. b . The

a. The yield curve from February 2007 slopes downward, meaning interest rates and maturity terms are inversely related.
b. The yield curve from January 2008 is characteristic of a normal yield curve, reflecting that the shorter the term, the higher the risk, and then interest rates decrease over time.
c. The yield curve from February 2007 is inverted as investors anticipated that inflation was likely to cause future short-term rates to be lower than current short-term rates.
d. The yield curve from January 2008 slopes upward, meaning interest rates and maturity terms are directly related.Maturity
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