The Federal just announced a reduction in short-term interest rates. The yield curve can respond in three different ways. Order the potential responses from most likely to least likely. Top label: Most LikelyMost Likely position 11 Yield curve steepens with short term rates falling and long term rates rising. position 22 Yield curve steepens with short-term rates falling more than long-term rates position 33 There is a parallel shift down in the yield curve (i.e. interest rates across the curve fall be the same amount)