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 expansions?

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