Q44

In relation to the typical business cycle:

Select one:

a. Only short-term interest rates tend to fall during a business recession.

b. During an economic expansion, short-term interest rates usually rise faster than long-term rates.

c. Interest rate forecasting is generally a straightforward task as major effects such as liquidity and inflation effects on interest rates can be forecasted accurately.

d. Short-term interest rates tend to be less volatile than long-term interest rates over the business cycle.

e. Unemployment data is usually a leading indicator.