An inverted yield curve implies that
A)long-term interest rates are lower than short-term interest rates.
B)long-term interest rates are higher than short-term interest rates.
C)long-term interest rates are the same as short-term interest rates.
D)intermediate-term interest rates are higher than either short- or long-term interest rates.

Question

Quizplus · Accepted Answer

An inverted yield curve occurs when long-term interest rates are lower than short-term interest rates. This is often seen as a predictor of economic recession.

An Inverted Yield Curve Implies That