Which fluctuate more-long-term or short-term interest rates


(1) Which fluctuate more-long-term or short-term interest rates? Why?

(2) What does it mean when it is said that the United States is running a trade deficit? What impact will a trade deficit have on interest rates?

(3) Suppose you have noticed that the slope of the corporate yield curve has become steeper over the past few months. What factors might explain the change in the slope?  

(1) Inflation is expected to be (higher or lower)  in the future.

(2) There is a positive (default or maturity)  risk premium.

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Financial Management: Which fluctuate more-long-term or short-term interest rates
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