Under the Expectations Hypothesis, a Downward-Sloping Yield Curve Suggests

Multiple Choice

Under the Expectations Hypothesis, a downward-sloping yield curve suggests:

A) investors expect future short-term interest rates to fall.
B) investors expect future short-term interest rates to rise.
C) this is a trick question, the yield curve always slopes upward.
D) investors expect future short-term interest rates to remain constant.