If the yield curve is downward sloping $($that is$,$ short$-$term rates are higher than long$-$term rates$),$ what does that imply about investors' expectations according to the unbiased expectations theory of the term structure of interest rates?

Multiple Choice

Investors expect that future short$-$term rates will be higher

Investors expect that the economy will be booming in the future

The yield curve cannot be downward sloping according to the unbiased expectations theory