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SIE: Economic Indicators
SIE practice questioneasyEconomic Indicators - Yield Curve

An inverted yield curve usually indicates:

  1. AA booming stock market
  2. BExpectations of an economic recession✓ Correct answer
  3. CRising commodity prices
  4. DStrong employment growth
Explanation

Why BExpectations of an economic recession

An inverted yield curve often precedes recessions. The other choices do not directly follow from an inverted yield curve.

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