D Question 12 1 pts According to the liquidity premium theory of interest rates, O long-term spot rates are higher than the average of current and expected future short-term rates. O investors prefer certain maturities and will not normally switch out of those maturities Investors are indifferent between different maturities if the long-term spot rates are equal to the average of current and expected future short-dorm rates o the term structure must always be upward sloping Olong-term spot rates are totally unrelated to expectations of future short-term rates Next Previous Norved Submit C