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The Yield Curve Will Be Downward Sloping When

Question 72

Multiple Choice

The yield curve will be downward sloping when


A) investors expect future short-term interest rates to be significantly lower than current short-term interest rates.
B) investors expect future short-term interest rates to be significantly higher than current short-term interest rates.
C) short-term interest rates are significantly lower than long-term interest rates.
D) short-term interest rates are equal to long-term interest rates.

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