Question: A normal yield curve is one in when? A. Long-term rates are higher than short-term rates because all borrowers always borrow for long periods of
A normal yield curve is one in when?
A. Long-term rates are higher than short-term rates because all borrowers always borrow for long periods of time B. Long-term rates are lower than short-term rates because lenders fear inflation C. Long-term rates are higher than short-term rates because lenders compensate themselves for the long time frame D. Long-term rates are equal to short-term rates because normal conditions equalize yields E. Long-term rates are lower than the Fed funds rate.
would the answer be: A?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
