FIN MCQ FIN 332 Under the pure expectations hypothesis, an upward sloping yield curve would indicate ________

Under the pure expectations hypothesis, an upward sloping yield curve would indicate ________

Under the pure expectations hypothesis, an upward sloping yield curve would indicate ___________________.

A) expected increases in inflation over time
B) expected decreases in inflation over time
C) the presence of a liquidity premium
D) that the equilibrium interest rate in the short term part of the market is lower than the equilibrium interest rate in the long-term part of the market

Answer: A

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FIN MCQ

Under the pure expectations hypothesis, an upward sloping yield curve would indicate ________

Under the pure expectations hypothesis, an upward sloping yield curve would indicate ___________________.

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