According to the expectations theory,an upward sloping yield curve indicates that security investors:
A)expect future interest rates to fall.
B)observe that substitute security interest rate falls.
C)expect future interest rates to rise.
D)observe that substitute security interest rate rises.

Question

Quizplus · Accepted Answer

The expectations theory suggests that an upward sloping yield curve indicates that investors expect future interest rates to rise.

According to the Expectations Theory,an Upward Sloping Yield Curve Indicates