what does a downward-sloping yield curve imply, according to the expectations theory of the term structure of interest rates?
Answer: D. 75) According to the expectations theory of the term structure. A) when the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future. B) when the yield curve is downward sloping, short-term interest rates are expected to remain relatively stable in the future.