According to the expectations hypothesis of the yield curve Multiple Choice the yield curve will often be upward sloping, long-term spot rates are geometric averages of the current and expected future short-term rates markets are segmented and investors stay in their own segment the yield curve can be used to predict recessions the yield curve will never be downward sloping An upward sloping yield curve Multiple Choice may be an indication that short-term interest rates are expected to rise may reflect a drop in inflation expectations may imply a positive liquidity premium both A and B both Band C