An inverted yield curve is a valuable forecasting tool because:
A. investors are expecting higher short-term rates in the future, and this usually signals an economic slowdown.
B. inverted yield curves signal better economic times are expected.
C. the yield curve usually is inverted so it reflects a growing economy.
D. the yield curve seldom is inverted and can signal an economic slowdown.
Answer: D
You might also like to view...
Why are prices of factors of production NOT equalized?
What will be an ideal response?
Total surplus
a. can be used to measure a market's efficiency. b. is the sum of consumer and producer surplus. c. is the value to buyers minus the cost to sellers. d. All of the above are correct.
Suppose the demand for money is not very sensitive to the interest rate. Given this information, we know that
A) the IS curve should be relatively flat. B) the IS curve should be relatively steep. C) the LM curve should be relatively flat. D) the LM curve should be relatively steep. E) neither the IS nor the LM curve will be affected.
The major statistics that provide macroeconomists a picture of the health of an economy include the following, except
A. Real gross domestic product B. Inflation statistics C. Prices of oil and gasoline D. Unemployment data