Question: 5. Indicate whether the statement is true/false, and explain why: a. According to the Expectations Hypothesis, an upward sloping yield curve implies a market expectation

5. Indicate whether the statement is true/false, and explain why: a.

5. Indicate whether the statement is true/false, and explain why: a. According to the Expectations Hypothesis, an upward sloping yield curve implies a market expectation that short-term interest rates will increase. b. An upward sloping yield curve necessarily implies expectations of higher future interest rates

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