Question: 43. Using the expectations theory of term structure, a positively sloped yield curve indicatesthat investors expect :A. falling long-term interest rates B. rising long-term interest
43. Using the expectations theory of term structure, a positively sloped yield curve indicatesthat investors expect
:A. falling long-term interest rates
B. rising long-term interest rates
C. short-term interest rates to be lower in the near future
D. short-term interest rates to be higher in the near future
D is right, why B is not? thanks
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
