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Suppose the economy has an inverted yield curve. According to the expectations hypothesis, which of the following interpretations could be used to explain this? Multiple

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Suppose the economy has an inverted yield curve. According to the expectations hypothesis, which of the following interpretations could be used to explain this? Multiple Choice Investors prefer bonds with less default risk. Interest rates are expected to fall in the future The term spread is positive. Investors prefer bonds with less interest-rate risk

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