Question: What is the relationship between the long - 4 erm interest rate and the short - term interest rate? The long - term interest rate

What is the relationship between the long-4erm interest rate and the short-term interest rate?
The long-term interest rate
A. fuch-ates more than the short-lerm rate because people borrow long lerm and lend ghort lerm
B. is not influenced by current short-term interest rates because people borrow long ferm
C. is generally a bit higher than the shortlem interest rate because long-lerm loans are riskier than short-term loans
0. Ir peneraly a thit thigher than the short-lerm interest rate because banks prefer to make short-term loans
E. is not influenced by expectabions about thure shortherm interest rates because expectations change in the long run
What is the relationship between the long - 4 erm

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