Shapes of yield curves in marketplace
What are the three basic shapes of yield curves in the marketplace?
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There are three basic shapes (slopes) of yield curves in the marketplace.
A) Ascending or normal yield curves are upward-sloping yield curves which take place when an economy is rising.
B) Descending or inverted yield curves are downward-sloping yield curves which take place when an economy is declining or heading into recession.
C) Flat yield curves entail that interest rates are improbable to change in the close future.
Refer to the given table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:
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