Question 19: Below is the expectations hypothesis of the term structure of interest rates fora 10 year government bond: (1+rro¬10)10 =(1+rro¬1)(1+rri¬2)(1+rr2¬3)...(1+rr9-10)All rates are effective annual yields to maturity that apply

over the years given in thesubscript. Assume that the government bonds have no default risk.Which of the following statements about this formula is NOT correct? (a) rro-10 is the rate that the government can borrow now for 10 years. It's a long term spotrate. (b) rr9¬10 is the rate that the government can borrow in 9 years for 1 year. It's a short termforward rate. (c) rro¬10 is the geometric average of the short term spot and forward rates. (d) If the yield curve is normal, then rro→1>rro→10>rr9¬10. (e) According to the expectations hypothesis,an upward sloping yield curve indicatesmarket expectations of future contractionary monetary policy.