The expectations hypothesis is that any long-term rate is an average of the expectations of future short-term rate over the applicable time horizon.

Name: The expectations hypothesis is that any long-term rate is an average of the expectations of future short-term rate over the applicable time horizon.
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The hypothesis is that any long-term rate is an average of the expectations of future short-term rates over the applicable time horizon.

The Expectations Hypothesis Is That Any Long-Term Rate Is an Average