Use the Following Figure to Answer the Question

question 83

Multiple Choice

Use the following figure to answer the question :

-The U-shaped yield curve in the figure above indicates that short-term interest rates are expected to

• A)rise in the near-term and fall later on.
• B)fall sharply in the near-term and rise later on.
• C)fall moderately in the near-term and rise later on.
• D)remain unchanged in the near-term and rise later on.

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