Discuss the following statements: Over a typical cycle, the movement of the yield curve is like the wagging of a dog’s tail. The entire tail wags, but short- term rates wag more often than long- term...

Discuss the following statements: Over a typical cycle, the movement of the yield curve is like the wagging of a dog’s tail. The entire tail wags, but short- term rates wag more often than long- term rates.

If yield curves became fl atter (steeper), what does this say about expectations of future interest rates?