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a.  the expectations hypothesis suggests that short-term interest rates are expected

to rise.

b.  the expectations hypothesis suggests that short-term interest rates are expected

to fall.

c.  the segmented markets theory suggests that short-term interest rates are

expected to fall.

d.  the preferred habitat theory suggests that short-term interest rates are expected

to fall.

60.  When the yield curve slopes down,

a.  the expectations hypothesis suggests that short-term interest rates are expected

to rise.

b.  the expectations hypothesis suggests that short-term interest rates are expected

to fall.

c.  the segmented markets theory suggests that short-term interest rates are

expected to rise.

d.  the preferred habitat theory suggests that short-term interest rates are expected

to rise.

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