-Refer to Figures A, B, and C. According to expectations theory, which of the figures is most likely to be associated with business cycle peaks, including the late part of an expansion and the early part of a recession?
A)Figure A
B)Figure B
C)Figure C
D) Both a and b

Question

-Refer to Figures A, B, and C. According to expectations theory, which of the figures is most likely to be associated with business cycle peaks, including the late part of an expansion and the early part of a recession?
A)Figure A 
B)Figure B 
C)Figure C 
D) Both a and b

Quizplus · Accepted Answer

Figure C shows a yield curve that is upward sloping, which is typically associated with business cycle peaks.