The yield on a $30-$year U$.$S$.$ Treasury security is $6\mathrm{.}5\%$; the yield on a $2-$year U$.$S$.$ Treasury bond is $4\mathrm{.}0\%.$ These data indicate

Question $13$ options:

the yield curve is flat since the risk premium needs to be added for longer maturities.

that people expect inflation to decrease in the future.

the yield curve is downward$-$sloping.

the yield curve is upward sloping.