Long-Term Interest Rates Tend to Be Higher Than Short-Term Interest

question 36

Multiple Choice

Long-term interest rates tend to be higher than short-term interest rates:

• A) at the bottom of the business cycle.
• B) at the end of an expansionary period.
• C) at the beginning of a contractionary period.
• D) at the peak of the business cycle.
• E) during periods of rapid deflation.