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Given the following three yield curves, explain the type of market each represents. With respect to the center yield-curve what does that shape indicate with
Given the following three yield curves, explain the type of market each represents. With respect to the center yield-curve what does that shape indicate with respect to short-, medium- and long-term risk of the economy. Which yield curve is the normal and which is the inverted?
(One of the graphs is upward sloping exponentially, the middle graph is a parabola, and the last graph is downward sloping exponentially.)
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