Question: 2. (a) We learned in class that every time we see an inverted yield curve, recession follows. Nevertheless, can you describe a theoretical scenario which

2. (a) We learned in class that every time we see

2. (a) We learned in class that every time we see an inverted yield curve, recession follows. Nevertheless, can you describe a theoretical scenario which might give rise to an inverted yield curve with the economy perfectly healthy going forward? (b) As Russia attacks Ukraine, do you think Treasury yields will increase or decrease? Very briefly explain your reasoning. (2 pts)

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