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According to the expectations theory of term structure, if market participants expect future short-term rates to be higher than current short-term rates, the yield curve

According to the expectations theory of term structure, if market participants expect future short-term rates to be higher than current short-term rates, the yield curve will: Select one: a. be upward-sloping. b. be downward-sloping. c. be flat. d. slope upward or downward or be flat, depending on risk and liquidity considerations.

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