A. If the yield curve slopes downward, that indicates that the expected long-term interest rates are lower than the current interest rates.
B. If the yield curve slopes downward, that indicates that the expected long-term interest rates are lower, not higher, than the current interest rates.
C. Past interest rates are not included in the yield curve. See the correct answer for a complete explanation.
D. Past interest rates are not included in the yield curve. See the correct answer for a complete explanation.
