Question: Assuming the pure expectations theory is correct, an upward-sloping yield curve implies: a. Interest rates are expected to increase in the future. b. Longer-term bonds

Assuming the pure expectations theory is correct, an upward-sloping yield curve implies:
a. Interest rates are expected to increase in the future.
b. Longer-term bonds are riskier than short-term bonds.
c. Interest rates are expected to decline in the future.

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