According to the Expectations Theory of Term Structure,if Next Year's

Multiple Choice

According to the expectations theory of term structure,if next year's short-term interest rate is expected to be lower 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 upward-sloping.