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Based on the Expectations Hypothesis of the term structure of interest rates, if the slope of the term structure increases, this is most likely because

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Based on the Expectations Hypothesis of the term structure of interest rates, if the slope of the term structure increases, this is most likely because some investors have become more risk-averse while other investors have become less risk-averse. investors as a whole anticipate lower future interest rates. investors as a whole anticipate higher future interest rates. Long-term bonds have become more liquid

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