Observation 3 The current yield curve for Country Y suggests that the business cycle is in the slowdown phase, with bond yields starting to reflect contractionary conditions.
这里讲处在slowdown阶段
Based on Observation 3, Wakuluk most likely expects Country Y’s yield curve in the near term to:
处在slowdown阶段应该是短期利率大于长期利率，yield curve inverts.
但答案是steepen,应该是对应 contraction阶段了。那是该对应y国在exhibit1里描述的阶段
但题干要求是Based on Observation 3！
