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According to the Expectations Theory of the yield curve, which of the following is TRUE? I. If the yield curve is upward-sloping, the market must
According to the Expectations Theory of the yield curve, which of the following is TRUE?
I. If the yield curve is upward-sloping, the market must expect an increase in short-term interest rates.
II. If the yield curve is downward-sloping, the market must expect a decrease in short-term interest rates.
Group of answer choices
I only
II only
Neither I nor II
I and II
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