Between 2000 and 2004, the gap between short-term and long-term real interest rates has
A) decreased.
B) decreased and then increased.
C) remained the same.
D) increased.

Question

Quizplus · Accepted Answer

The gap between short-term and long-term real interest rates typically increases when the yield curve steepens, which can occur due to expectations of higher inflation or stronger economic growth in the future.

Between 2000 and 2004, the Gap Between Short-Term and Long-Term