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SIE: Economic Indicators
SIE practice questionmediumEconomic Indicators - Yield Curves

If the yield curve inverts, what is this commonly interpreted to mean?

  1. AA strong expansion is likely
  2. BA possible upcoming recession✓ Correct answer
  3. CHigh inflation is imminent
  4. DMonetary policy is easing
Explanation

Why BA possible upcoming recession

An inverted yield curve often predicts recession, not expansion, high inflation, or easing policy.

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