A flat or inverted yield curve is an indication that

Group of answer choices

the fed is operating with an accomodative monetary policy

a recession might be on the horizon

According to the monetarist view, the cause of inflation is

Group of answer choices

low rate of unemployment

past inflation

all of the listed answers are correct

excess money growth

Consider the following spot interest rates on securities of various maturities:

1 1.0%

2 1.4%

3 1.6%

4 1.7%

Compute the implied forward rate on a 1-year security at the beginning of year 2. ( ₂f₁ )

Group of answer choices

1.2%

2.0%

1.8%

1.4%

the economy is about to recover from recession

A steeply upward-sloping yield curve is an indication that

Group of answer choices

recession might be on the horizon

the fed is conducting a restrictive, or "tight" monetary policy

the fed is conducting an accomodative, or "easy" monetary policy