An Upward-Sloping Term Structure of Interest Rates Indicates That

question 81

Multiple Choice

An upward-sloping term structure of interest rates indicates that:

• A)longer-term rates are higher than shorter-term rates.
• B)investors should expect interest rates to decline in the future.
• C)short and intermediate term rates are real rates while long term rates are nominal rates.
• D)the Fed is expected to decrease rates in the near term.
• E)the larger the investment in dollars,the higher the interest rate paid.

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