According to the Expectations Theory of the Term Structure

Multiple Choice

According to the expectations theory of the term structure

A) when the yield curve is steeply upward sloping,short-term interest rates are expected to remain relatively stable in the future.
B) when the yield curve is downward sloping,short-term interest rates are expected to remain relatively stable in the future.
C) investors have strong preferences for short-term relative to long-term bonds,explaining why yield curves typically slope upward.
D) yield curves should be equally likely to slope downward as slope upward.