【正确答案】 B

【答案解析】The pure expectations theory says that forward rates are solely a function of expected future spot rates. In other words, long-term interest rates equal the mean of future expected short-term rates. This implies that an investor could earn the same return by investing in a 1-year bond or by sequentially investing in two 6-month bonds. The implications for the shape of the yield curve under the pure expectations theory are: If the yield-curve is upward sloping, short-term rates are expected to rise. If the curve is downward sloping, short-term rates are expected to fall. A fiat yield curve implies that the market expects short-term rates to remain constant.