According to the pure expectations theory of the term structure of interest rates, the ____ the difference between the implied one-year forward rate and today's one-year interest rate, the ____is the expected change in the one-year interest rate.
A) greater; less
B) less; greater
C) greater; greater
D) less; less
E) C and D

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The Answer of According to the pure expectations theory of the term structure of interest rates, the ____ the difference between the implied one-year forward rate and today's one-year interest rate, the ____is the expected change in the one-year interest rate.
A) greater; less
B) less; greater
C) greater; greater
D) less; less
E) C and D

According to the Pure Expectations Theory of the Term Structure