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?

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