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The expectations theory is successful in explaining: 1. Why the yield curve is usually upward sloping. II. Why yield curves slope upward when short-term rates

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The expectations theory is successful in explaining: 1. Why the yield curve is usually upward sloping. II. Why yield curves slope upward when short-term rates are low. O A. Only Il is correct. O B. Both I and II are correct. O C. Only I is correct. O D. Both I and II are incorrect

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