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3. (9 pts) The yield curve is inverted, meaning short-term rates are above long-term rates. Use the liquidity premium theory of the yield curve to
3. (9 pts) The yield curve is inverted, meaning short-term rates are above long-term rates. Use the liquidity premium theory of the yield curve to forecast future short-term interest rates. To receive full credit, you must use the liquidity premium theory equation for the term structure to explain your answer. 3. (9 pts) The yield curve is inverted, meaning short-term rates are above long-term rates. Use the liquidity premium theory of the yield curve to forecast future short-term interest rates. To receive full credit, you must use the liquidity premium theory equation for the term structure to explain your
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