According to the Liquidity Premium Theory,what Does a Flat Yield

question 93

Multiple Choice

According to the liquidity premium theory,what does a flat yield curve indicate?

• A) Short-term interest rates are expected to remain stable.
• B) Short-term interest rates are expected to rise.
• C) Short-term interest rates are expected to fall.
• D) Long-term interest rates are expected to fall.

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