Question: 8 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

8 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. B. Only 1 is correct. OC. Both I and II are correct. Frish OD. Both I and II are incorrect. 7 Next page

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