Which of the Following Is Likely to Happen to Short-Term

Multiple Choice

Which of the following is likely to happen to short-term and long-term interest rates during recessions?

A) The short-term interest rates rise during recessions but the long-term interest rates fall during recessions.
B) The short-term interest rates fall during recessions but the long-term interest rates rise during recessions.
C) Both the short-term and the long-term interest rates fall during recessions.
D) Both the short-term and the long-term interest rates rise during recessions.