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According to the expectations theory of the term structure of interest rates,

a. the short-term interest rate is equal to the average of current and expected future long-term interest rates.

b. the short-term interest rate has no relation to long-term interest rates.

c. the long-term interest rate is equal to the average of current and expected future short-term interest rates.

d. the yield curve is always flat.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91568708

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