A short term interest rate occurs over a short period of time. A long term interest rate occurs over a long period of time.
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what is the relationship between long run average cost curve and short run average cost curve?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
short- and long-term interest rates usually move in the same direction. Yield curve is often upward, so, long-term interest rates are usually higher than short-term interest rates. short-term interest rates are often more fluctuating than long-term rates.
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
Higher