Question 11 Which of the following statement about the expectations hypothesis is TRUE? I. Long-term spot rates are unrelated to expected future short-term spot rates II. If the yield curve is upward sloping, then future short-term spot rates are expected to increase III. If the yield curve is inverted, then future short-term spot rates are expected to decrease IV. If the yield curve is flat, then future short-term spot rates are expected to stay the same I and IV 0 / 12 pts II and III O I only O II, III, and IV