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The expectations hypothesis states that investors A. expect higher long term interest rates because of the lack of liquidity for long term bonds. B. require

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The expectations hypothesis states that investors A. expect higher long term interest rates because of the lack of liquidity for long term bonds. B. require the real rate of return to rise in direct proportion to the length of time to maturity. C. require higher long - term interest rates today if they expect higher short - term interest rates in the future. D. normally expect the yield curve to be downsloping

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