An upward-sloping yield curve that indicates generally cheaper short-term borrowing costs than long-term borrowing costs is called

Question

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A normal yield curve indicates that short-term borrowing costs are generally cheaper than long-term borrowing costs, resulting in an upward-sloping curve. A flat yield curve suggests that short- and long-term borrowing costs are relatively similar, while an inverted yield curve indicates that long-term borrowing costs may be cheaper than short-term borrowing costs.

An Upward-Sloping Yield Curve That Indicates Generally Cheaper Short-Term Borrowing