Long-run interest rates tend to be higher and less volatile than short-run interest rates.

Name: Long-run interest rates tend to be higher and less volatile than short-run interest rates.
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Question

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Long-run interest rates are determined by the overall economic conditions and expectations for the future, which tend to be more stable than short-term fluctuations. Short-run interest rates, on the other hand, are influenced by immediate changes in market conditions and are therefore more volatile.

Long-Run Interest Rates Tend to Be Higher and Less Volatile