Watch the video "How The Yield Curve Predicted Every Recession For The Past 50 Years(Links to an external site.)".

https://youtu.be/DCQwiF0J7hw

Read the following article, which introduces the concept ofTreasury billsand the relationship between their yield and price. Then answer the question that follows.

Answer the following four questions.

Question 1: Explain the relationship between the bond market and the economy.

Question 2: Explain what is the bond market indicating the state of the economy if the yield curve is flat.

Question 3: Explain what is the bond market indicating the state of the economy if the yield curve is negative.

Question 4: Explain what is the bond market indicating the state of the economy if the yield curve is positive.