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  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 6: The Risk and Term Structure of Interest Rates
  5. Question
    If Investors Expect Interest Rates to Fall Significantly in the Future,the
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If Investors Expect Interest Rates to Fall Significantly in the Future,the

Question 2

Question 2

Multiple Choice

If investors expect interest rates to fall significantly in the future,the yield curve will be inverted. This means that the yield curve has a ________ slope.


A) steep upward
B) slight upward
C) flat
D) downward

Correct Answer:

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