The yield curve in an economic period where higher future inflation is expected would be ________.
A) upward-sloping
B) flat
C) downward-sloping
D) lognormal

Question

Quizplus · Accepted Answer

An upward-sloping yield curve typically indicates that investors expect higher inflation in the future, leading to higher interest rates to compensate for the decreased purchasing power over time.

The Yield Curve in an Economic Period Where Higher Future