Assume that the current yield curve is upward sloping or normal. This implies that:
A. short-term interest rates are more volatile than long-term rates.
B. inflation is expected to subside in the future.
C. the economy is at the trough of a business cycle.
D. long-term bonds are less attractive to investors than short-term bonds.
E. short-term interest rates are lower than the long-term interest rates.
Answer: E
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A. Tax abatements B. Tax credits C. Unpaid labor by friends and family D. All of these.
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What will be an ideal response?
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