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