The slope of the Yield Curve informs us of portfolio management choices by the broader market of fixed income investors (some retail, others institutional). Let us assumethat until this point in history, non-domestic investors had been precluded from buying US Treasuries (and assume all the other details of the US economy, its relative positionin the world, etc, is the same as it is today in the real world). Tomorrow, a law will be passed allowing other nations to both long and short US Treasuries. We would expectthe slope of the yield curve to become a better or worse predictor of the US business cycle.

A. Better

B. Worse