单选题 According to the expectations hypothesis, investors' expectations of decreasing inflation will result in:

A、

A. a downward-sloping yield curve.
B、

B. an upward-sloping yield curve.
C、

C. a flat yield curve.

【正确答案】 A

【答案解析】The expectations hypothesis holds that the shape of the yield curve reflects investor expectations about the future behavior of inflation and market interest rates. Thus, if investors believe inflation wilt be slowing down in the future, they will require lower long-term rates today and, therefore, the yield curve will be downward-sloping.