According to your text, during a period of economic expansion:
A) Debt security prices typically rise
B) Interest rates tend to fall
C) Long-term interest rates increase faster than short-term interest rates
D) Interest rates typically rise
E) None of the above

Question

Quizplus · Accepted Answer

During a period of economic expansion, interest rates typically rise due to increased demand for capital and the potential for higher inflation.

According to Your Text, During a Period of Economic Expansion