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If the yield curve is inverted, Expectations Theory suggests: The one year rate in five years will be higher than the one year rate today

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If the yield curve is inverted, Expectations Theory suggests: The one year rate in five years will be higher than the one year rate today Absolutely nothing because the theory suggestions expectations are irrelevant The one year rate in five years will be lower that the one year rate today Absolutely nothing because an inverted yield curve never occurs

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