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Suppose that the yield curve is downward sloping. Which of the following must be true? [i]The expectations hypothesis is violated. [ll]The liquidity preference theory is

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Suppose that the yield curve is downward sloping. Which of the following must be true? [i]The expectations hypothesis is violated. [ll]The liquidity preference theory is violated. O I only must be true Il only must be true Both I and II must true None of the above

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