Assume that the expectation hypothesis holds, a normal yield curve implies that

Select one:

A$.$ interest rates are expected to increase in the future.

B$.$ interest rates are expected to remain stable in the future.

C$.$ interest rates are expected to decline in the future.

D$.$ interest rates could either be expected to increase or decline in the future.

E$.$ investors demand a liquidity premium for holding longer dated bond.

F$.$ None of the other options are correct