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A downward sloping yield curve means that investors expect A)short-term interest rates to rise. B)short-term interest rates to fall. C)Inflation rates to rise. D)long-term bonds

A downward sloping yield curve means that investors expect

A)short-term interest rates to rise.

B)short-term interest rates to fall.

C)Inflation rates to rise.

D)long-term bonds to be less risky than short-term bonds.

E)none of the answers are correct. Yield curves are always upward sloping.

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