Which accurately describes a flat yield curve

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Problem 1: Which of the following accurately describes a flat yield curve?

Option 1: A curve that slopes downward as maturities lengthen and that indicates confidence that economic activity will grow in the future.

Option 2: A curve with a minimal spread between short-term and long-term maturities and that indicates concern or doubt about the strength of the economy.

Option 3: A curve that slopes upward as maturities lengthen and that indicates fear that the economy is about to enter a recession.

Option 4: A curve that rises sharply and then levels off as maturities lengthen and that indicates a transition between a period of economic stagnation to one of growth.

Reference no: EM132739613

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