Answer:
During or near peaks of business activity, yield curves generally are either flat or downward sloping is True statment.
Step-by-step explanation:
The given statement "During or near peaks of business activity, yield curves generally are either flat or downward sloping" is True because During or near peaks of business activity, yield curves generally are either flat or downward sloping. This pattern in yield curves is influenced by various economic factors and market expectations.
As business activity reaches its peak, central banks may implement monetary policies to counter inflationary pressures. These policies often involve raising interest rates, which can lead to a flattening or downward slope in yield curves. Investors anticipate these changes and adjust their bond portfolios accordingly, impacting the overall shape of the yield curve.