Question: Assume that the expectation hypothesis holds, a normal yield curve implies that Select one: A . interest rates are expected to increase in the future.

Assume that the expectation hypothesis holds, a normal yield curve implies that
Select one:
A. interest rates are expected to increase in the future.
B. interest rates are expected to remain stable in the future.
C. interest rates are expected to decline in the future.
D. interest rates could either be expected to increase or decline in the future.
E. investors demand a liquidity premium for holding longer dated bond.
F. None of the other options are correct
Assume that the expectation hypothesis holds, a normal yield curve implies

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