Use the Following Figure to Answer the Question

question 38

Multiple Choice

Use the following figure to answer the question :

-The steeply upward sloping yield curve in the figure above indicates that

• A)short-term interest rates are expected to rise in the future.
• B)short-term interest rates are expected to fall moderately in the future.
• C)short-term interest rates are expected to fall sharply in the future.
• D)short-term interest rates are expected to remain unchanged in the future.

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