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If expectation theory holds then a. a flat yield curve is an indication that long-run rates are expected to increase b. investors must be offered
If expectation theory holds then
a. a flat yield curve is an indication that long-run rates are expected to increase
b. investors must be offered a higher expected return to hold a bond longer
c. the yield curve cannot be downward sloping
d. then an upward sloping yield curve is an indication that short-term rates are expected to increase
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