a) What does Figure 4 tell you about the slope of the yield curve for the most part of our sample period? Is this good news or bad news for commercial banks? Explain.

b) Can you detect any yield curve inversions in Figure 4? If so, please list all the years and months where such events happened.

c) For each yield curve inversion you have detected in part b), was there a follow-up recession? Please cite and/or present proper real-world data about economic recessions to support your argument.

Figure 4: Long-term vs. Short-term Interest Rates, 2005-2022