In reference to the lecture we had about the yield curve, the lecture note and the video posted in the topic 1 folder in the Course materials, discuss:

1. What is inverted yield curve? (2 points)

2. Why is it interpreted as the sign of imminent recession? (4 points)

3. What causes the inverted yield curve? (4 points)

It is absolutely crucial to provide the logical reasoning & the schematic account of the financial market process.