According to the pure 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.
c. investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward.
d. all of the above.