An Upward-Sloping Yield Curve Can Best Be Explained By

Multiple Choice

An upward-sloping yield curve can best be explained by:

A) the relationship between nominal interest rates and expected inflation rates.
B) the expectation that short-term interest rates will decrease in the future.
C) the fact that short-term interest rates are more inflation-sensitive than long-term rates.
D) the expectation that inflation will increase in the future.