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    Exam 6: The Risk and Term Structure of Interest Rates
  5. Question
    When Short-Term Interest Rates Are Expected to Fall Sharply in the Future,the
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When Short-Term Interest Rates Are Expected to Fall Sharply in the Future,the

Question 68

Question 68

Multiple Choice

When short-term interest rates are expected to fall sharply in the future,the yield curve will


A) slope up.
B) be flat.
C) be inverted.
D) be an inverted U shape.

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