a) Suppose that you assumed that the liquidity premium hypothesis was correct. i) Briefly explain what yield curve slopes would be consistent with this assumption. Use dot points where necessary. [5 Marks] ii) Briefly explain how the incorporation of a liquidity premium affects the slope of the yield curve compared with the expectations theory model. Use dot points where necessary. [6 Marks] iii) Briefly explain why you believe the expectations theory is more widely used in practice than the liquidity premium. Use dot points where necessary. a) Suppose that you assumed that the liquidity premium hypothesis was correct. i) Briefly explain what yield curve slopes would be consistent with this assumption. Use dot points where necessary. [5 Marks] ii) Briefly explain how the incorporation of a liquidity premium affects the slope of the yield curve compared with the expectations theory model. Use dot points where necessary. [6 Marks] iii) Briefly explain why you believe the expectations theory is more widely used in practice than the liquidity premium. Use dot points where necessary