Multiple Choice
According to the expectations theory of term structure,if next year's short-term interest rate is expected to be higher than the current short-term rate,the:
A) current short-term rate will be equal to the current long-term rate.
B) current short-term rate will be higher than the current long-term rate.
C) current short-term rate will be lower than the current long-term rate.
D) yield curve will be downward-sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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