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An inverted yield curve generally means that: A. nominal interest rates are less than real interest rates B. There is an expectation of higher inflation
An inverted yield curve generally means that:
A. nominal interest rates are less than real interest rates
B. There is an expectation of higher inflation rates in the future
C. there is an expectation of lower inflation rates in the future
D. The market requires a higher interest rate premium for longer maturity bonds
Note: the answer is not B
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