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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