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When the yield curve is downward-sloping A the inflation rate is expected to rise. B long-term yields are higher than short-term yields. C short-term yields

When the yield curve is downward-sloping

A

the inflation rate is expected to rise.

B

long-term yields are higher than short-term yields.

C

short-term yields are higher than long-term yields.

D

the bond market is anticipating the U.S. Treasury may default on its obligations.

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