According to the Expectations Theory, When the Yield Curve Is

Multiple Choice

According to the expectations theory, when the yield curve is falling, market participants expect

A) future long-term interest rates to rise above current short-term rates.
B) future long-term interest rates to fall below current long-term rates.
C) future short-term interest rates to rise above current short-term rates.
D) future short-term interest rates to fall below current short-term rates.