which of the following statements is true? Circle the best single answer
1. the expectations hypothesis indicates a flat yield curve if anticipated future short-term rates exceeded current sort-term rates
2. the basic conclusion of the expectations hypothesis is that the long-term rate is equal to the anticipated short-term rate
3. the liqidity preferencetheory indicates that, all other things being equal, longer maturitieswill have higher yields
4. the liquidity preference theory states that a rising yield curve necessarily implies that the market anticipates increases in interest rates.