Q. A negatively sloped yield curve suggests that (Solved)

1. Short-term rates exceed long-term rates, and the Federal Reserve is following a tight monetary policy

2. Short-term rates exceed long-term rates, and the Federal Reserve is following an easy monetary policy

3. Long-term rates exceed short-term rates, and the Federal Reserve is following a tight monetary policy

4. Long-term rates exceed short-term rates, and the Federal Reserve is following an easy monetary policy