Why yield curves have most often been upward sloping

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Reference no: EM131191980

Use the liquidity premium to give an explanation for why yield curves have most often been upward sloping over the past 50 years.

Could a yield curve be upward sloping even if short- term rates were expected to remain constant?

If interest rates are expected to fall dramatically, under what conditions would the yield curve still be upward sloping?

Reference no: EM131191980

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