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Assume that inflation is expected to steadily decline in the years ahead, but that the real risk-free rate, k', is expected to remain constant. Which

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Assume that inflation is expected to steadily decline in the years ahead, but that the real risk-free rate, k', is expected to remain constant. Which following statement is consistent with those conditions? O A. Ifthe expectations theory holds, the Treasury yield curve must be downward sloping O B. If the expectations theory holds, the Treasury yield curve must be upward sloping. C. If the expectations theory holds, the yield curve for corporate stock must be upward sloping. O D. Only if there is a negative maturity risk premium, the Treasury yield curve will be upward sloping OE.The yield curve will be flat Reset Selection

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