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You observe a yield curve and notice that its slope is negative. Would you call this a 'normal' yield curve? Why? a . Yes, yield
You observe a yield curve and notice that its slope is negative. Would you call this a 'normal' yield curve? Why?
a Yes, yield curves have a negative slope in all market circumstances.
b Yes, yield curves have a negative slope in normal market circumstances.
c No yield curves tend to have positive slopes in 'normal' markets.
d No yield curves tend to be flat in 'normal' markets.
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