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Which of the following graphs shows a steep yield curve? Panel A Panel B Yield Yield Term Term O Panel A O Panel BHow do different models explain a steep yield curve? Check all that apply. It could be good news (lower interest rates strengthen real estate market) or it could be bad news (central banks have cut interest rates because they are worried about an impending economic slowdown and there are too many homes being built and sold). Economic and financial market conditions are not expected to change much at all over time. It could be good news (savers have uses for funds) or bad news (savers are worried about the future). Longterm yield fell, while short-term yields increased; thus these markets are different. It could be good news (faster growth) or bad news (higher ination)