Yield curve increases after decrease in federal funds rate

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Reference no: EM13772432

If the slope of the yield curve increases (steepens) after a decrease in the federal funds rate:

A. Short term interest rates are increasing relative to longer term rates.

B. There is no change in the value of short and long term interest rates.

C. The gap between short and long term interest rates remains unchanged.

D. Short term interest rates are decreasing relative to longer term rates.

Reference no: EM13772432

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