Long- term interest rates are _ than short- term because long- term loans are _ than short- term loans.

Name: Long- term interest rates are _ than short- term because long- term loans are _ than short- term loans.
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Question

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Long-term loans are riskier than short-term loans because the longer the term, the more uncertain future conditions become. Thus, lenders demand a higher interest rate as compensation for taking on more risk with longer-term loans.

Long- Term Interest Rates Are _ Than Short- Term Because