Q.

A negatively sloped yield curve suggests that

A. Short-term rates exceed long-term rates, and the Federal Reserve is following a tight monetary policy
B. Short-term rates exceed long-term rates, and the Federal Reserve is following an easy monetary policy
C. Long-term rates exceed short-term rates, and the Federal Reserve is following a tight monetary policy
D. Long-term rates exceed short-term rates, and the Federal Reserve is following an easy monetary policy
Answer» A. Short-term rates exceed long-term rates, and the Federal Reserve is following a tight monetary policy
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