please explain

If interest rates decline, which would you rather be holding, long- term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk? Interest rates were lower in the mid-1980s than in the late 1970s, yet many economists have commented that real interest rates were actually much higher in the mid-1980s than in the late 1970s. Does this make sense? Do you think that these economists are right? From the Fed article- I thought inflation was we want 2% inflation? "bad" if so why do This DB is worth 10 points. there is a rubric associated with this for 20 points