5. The chapter claims that interest rates tend to move together. Using monthly data since 1975, graph
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5. The chapter claims that interest rates tend to move together. Using monthly data since 1975, graph the interest rate on three-month Treasury bills, the yield on high-grade corporate bonds, the 30-year conventional mortgage rate, the prime rate charged by banks, and the yield on ten-year Treasury bonds. Which interest rates tend to be highest? Lowest? Explain. Which interest rates tend to move together? Explain.
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