Examination of the Yield Curve Indicates

Multiple Choice

Examination of the yield curve indicates

A) that short-term nominal interest rates are usually higher than long-term nominal interest rates.
B) that the expected profitability of short-term investment projects is usually higher than the expected . profitability of long-term investment projects.
C) that short-term nominal interest rates are usually lower than long-term nominal interest rates.
D) that the expected rate of return on short-term stocks is usually lower than the expected rate of return on long-term stocks.