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Which one of the following is a true statement? I. Yield curve is normally upward sloping II. Yield curve can be inverted III. Inverted yield

Which one of the following is a true statement?

I. Yield curve is normally upward sloping

II. Yield curve can be inverted

III. Inverted yield curve can lead to economic recession

IV. Investors should purchase long term bond when yield curve is inverted.

A) I and II only

B) I, II and III only

C) II, III and IV only

D) II and IV only

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