Question: Question 12 12 pts Complete the following statement using one word in the parentheses. Write down your choices of words to fill in the blanks

 Question 12 12 pts Complete the following statement using one word

Question 12 12 pts Complete the following statement using one word in the parentheses. Write down your choices of words to fill in the blanks and briefly explain your answer. If interest rates are expected to fall, long-term interest rates will tend to be (higher/lower) than short-term rates to attract borrowers. In these cases, the yield curve shape will be (normal/steep/smooth/inverted). Such a yield curve shape tends to be associated with (boom/recession) in the economy. 1. Higher 2. Stee 4 words >

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