Answer:
The correct answer is b.
A normal yield curve chart shows long-term debt instruments
having higher yields than short-term debt instruments.
Sometimes referred to as positive yield curve. The
reason it is "normal" is because you would
expect slightly more risk for holding a bond for a
longer period of time because there is great risk
of default.
An inverted yield curve is when long-term debt instruments
that have lower yields than short-term debt instruments.
