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Business, 09.10.2019 21:00 cecem58

Which of the following statements is true? (a) the expectations hypothesis indicates a flat yield curve if anticipated future short-term rates exceed current short-term rates. (b) the basic conclusion of the expectations hypothesis is that the long-term rate is equal to the anticipated short-term rate. (c) the liquidity hypothesis indicates that, all other things being equal, longer maturities will have higher yields. (d) the liquidity preference theory states that a rising yield curve necessarily implies that the market anticipates increases in interest rates.

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Which of the following statements is true? (a) the expectations hypothesis indicates a flat yield c...
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