Use the Following Figure to Answer the Question

question 24

Multiple Choice

Use the following figure to answer the question :

-The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future.

• A)short-term;rise
• B)short-term;fall moderately
• C)short-term;remain unchanged
• D)long-term;fall moderately

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Definitions:

Recovery Phase

A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.

Trough

A Trough in economics is a phase in the business cycle where activity is at its lowest point, preceding a recovery and expansion phase.

Business Cycle

The Business Cycle is the fluctuation of economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.