SIE practice questioneasyEconomic Indicators - Yield Curve
An inverted yield curve usually indicates:
- AA booming stock market
- BExpectations of an economic recession✓ Correct answer
- CRising commodity prices
- DStrong employment growth
Explanation
Why B — Expectations 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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