Assume that the current yield curve is upward sloping,or normal.This implies that
A) Short-term interest rates are more volatile than long-term rates.
B) Inflation is expected to subside in the future.
C) The economy is at the peak of a business cycle.
D) Long-term bonds are a better buy than short-term bonds.
E) None of the above statements is necessarily implied by the yield curve given.
Correct Answer:
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