Assume That the Current Yield Curve Is Upward Sloping or Normal

Multiple Choice

Assume that the current yield curve is upward sloping or normal. This implies that:

A) short-term interest rates are more volatile than long-term rates.
B) inflation is expected to subside in the future.
C) the economy is at the trough of a business cycle.
D) long-term bonds are less attractive to investors than short-term bonds.
E) short-term interest rates are lower than the long-term interest rates.