A sharp upward sloping yield curve indicates that
A)an economic expansion has just begun.
B)an economic expansion has been going on for several years.
C)a recession is about to begin.
D)an economic expansion is nearly over.

Question

Quizplus · Accepted Answer

A sharp upward sloping yield curve typically indicates that investors expect stronger economic growth and higher inflation in the future, which often occurs at the beginning of an economic expansion.

A Sharp Upward Sloping Yield Curve Indicates That