If the yield curve is downward sloping (inverted), What is the expected state of the economy over the next 6-12 months?
1) The economy is expected to shrink over the next 6-12 months.
2) The economy is expected to be volatile over the next 6-12 months.
3) The economy is expected to stay stable over the next 6-12 months.
4) The economy is expected to expand over the next 6-12 months.