Multiple Choice
According to the expectations theory of term structure,if market participants expect future short-term rates to be higher than current short-term rates,the yield curve will:
A) be upward-sloping.
B) be downward-sloping.
C) be flat.
D) slope upward or downward or be flat, depending on risk and liquidity considerations.
Correct Answer:
Verified
Correct Answer:
Verified
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