In the long run, the yield curve tends to be
A) positively sloped.
B) negatively sloped.
C) nearly vertical.
D) nearly horizontal.

Name: In the long run, the yield curve tends to be A) positively sloped. B) negatively sloped. C) nearly vertical. D) nearly horizontal.
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Question

Quizplus · Accepted Answer

In the long run, the yield curve tends to be positively sloped because longer-term investments typically carry more risk and therefore demand higher yields.

In the Long Run, the Yield Curve Tends to Be