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    Exam 7: Risk Structure and Term Structure of Interest Rates
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    Under the Expectations Theory, an Upward-Sloping Yield Curve Indicates That
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Under the Expectations Theory, an Upward-Sloping Yield Curve Indicates That

Question 79

Question 79

Multiple Choice

Under the expectations theory, an upward-sloping yield curve indicates that investors expect future short-term rates to


A) fall.
B) rise.
C) remain constant.
D) either rise or remain constant.

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