Question: Question 8 (2 points) Saved Accoring to the pure expectations theory, a downward sloping yield curve (short- term rates higher than long-term rates) indicates: the

Question 8 (2 points) Saved Accoring to the pure expectations theory, a downward sloping yield curve (short- term rates higher than long-term rates) indicates: the market expects interest rates to rise in the future the market expects interest rates to fall in the future the market expects rates to rise, but where short-term rates rise relatively more than do long-term rates

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