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The following figure shows the yield curve for Treasury bonds at four different dates. Figure 5.1 The Yield Curve at different Dates U.S. Treasury Yield

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The following figure shows the yield curve for Treasury bonds at four different dates. Figure 5.1 The Yield Curve at different Dates U.S. Treasury Yield Curves -July 10, 2000 -October 22, 2007 Interest -February 15, 2011 Rate clanuary In, 2018 Three Two Five Ten Thirty Month Year Year Year Year Tem (a) At one of these dates the market expects the economy to enter a recession. Which of these yield curves best corresponds to that expectation? (b) At one of these dates, the market expects the economy to exit from a recession. Which of these yield curves best corresponds to that expectation

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