A Moderately Upward-Sloping Yield Curve Indicates That Short-Term Interest Rates

Multiple Choice

A moderately upward-sloping yield curve indicates that short-term interest rates are expected to

A) neither rise nor fall in the near future.
B) remain relatively unchanged, but that long-term rates are expected to fall.
C) neither rise nor fall, but that long-term rates are expected to rise moderately.
D) rise moderately in the near future.