Question

According to the expectation theory of the term structure, a flat yield curve indicates th Select one: O short-term inte...


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Transcribed: According to the expectation theory of the term structure, a flat yield curve indicates that Select one: O short-term interest rates are expected to decline moderately in the future. short-term interest rates are expected to dacline sharply in the future. O short-term interest rates are expected to rise in the future. O short-term interest rates are expected to remain unchanged in the future.

Answer

According to the expectation theory of term structure, a flat yield curve indicates that the short run interest rates are  expected to remain unchanged in the future.

short run interest rates are  expected to remain unchanged in the future.

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