According to Pure Expectations Theory, If Interest Rates Are Expected

question 43

Multiple Choice

According to pure expectations theory, if interest rates are expected to decrease, there will be ____ pressure on the demand for short-term funds by borrowers and ____ pressure on the demand for long-term funds issued by borrowers.

• A)upward; upward
• B)downward; downward
• C)upward; downward
• D)downward; upward

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