The yield curve spread between the 10-year T-bond yield and the federal funds rate is a ________ economic indicator.
A) leading
B) lagging
C) coincident
D) mixed

Question

Quizplus · Accepted Answer

The yield curve spread between the 10-year T-bond yield and the federal funds rate is a leading economic indicator because it reflects market expectations of future economic conditions. A narrowing spread could signal a potential recession, while a widening spread could indicate economic expansion. This indicator has been used by economists and investors to predict economic downturns before they happen.

The Yield Curve Spread Between the 10-Year T-Bond Yield and the Federal