If you are advised that the yield curve is currently inverted, this means that:

If you are advised that the yield curve is currently inverted, this means that:



A) long-term and short-term rates move inversely.

B) long-term rates are lower than short-term rates.

C) short-term rates are lower than long-term rates.

D) long-term rates are significantly higher than short-term rates.



Answer: B) long-term rates are lower than short-term rates.


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