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(a) Critically discuss the expectations hypothesis theory of the term structure of interest rates. (30 marks) (b) Critically discuss the liquidity preference theory of the

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(a) Critically discuss the expectations hypothesis theory of the term structure of interest rates. (30 marks) (b) Critically discuss the liquidity preference theory of the term structure of interest rates. (30 marks) (c) Evaluate the differing implications of an upward sloping term structure of interest rates. Plot the relevant graphs to support your answer. (40 marks)

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