According to the expectations theory of the term structure A) when th

According to the expectations theory of the term structure

A) when the yield curve is steeply upward sloping, short-term interest rates are expected to remain relatively stable in the future.
B) when the yield curve is downward sloping, short-term interest rates are expected to remain relatively stable in the future.
C) investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward.
D) yield curves should be equally likely to slope downward as slope upward.

 

ANSWER

D

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