Which of the following is likely to happen to short-term and long-term interest rates during expansions?
A. Both the short-term and the long-term interest rates rise during expansions.
B. The short-term interest rates fall during expansions but the long-term interest rates rise during expansions.
C. Both the short-term and the long-term interest rates fall during expansions.
D. The short-term interest rates rise during expansions but the long-term interest rates fall during expansions.
Answer: A
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