Wednesday, December 28, 2005

The Inverted Yield Curve SAT Question

I read somewhere that recessions are preceded by inverted yield curves, but not all yield curves lead to recessions. Which sounds a little like an intro to an SAT question. Lets do it!

Q: Recessions are preceded by an inverted yield curve; however, not every inverted yield curve leads to a recession. What can we say about the current inverted yield curve?

A. Sally is taller than Jane.
B. Jane is taller than Sally.
C. Always yield to traffic when merging.
D. Inversion is good for lower back pain.
E. Jane and Sally are the same height.
F. Take the Wolverines and give the points to the Cornhuskers.

Invest wisely!

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