Question: If the term structure is flat, what should be the relationship between current and expected future interest rates under the Liquidity Premium Theory? Group of

If the term structure is flat, what should be the relationship between current and expected future interest rates under the Liquidity Premium Theory?
Group of answer choices
The market expects future interest rates to be equal to current rates.
The market expects future interest rates to be higher than current rates.
The market expects future interest rates to be lower than current rates

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