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a. If we observe that yields on short-term government debt are higher than yields on longterm government debt then we should expect a recession in

a. If we observe that yields on short-term government debt are higher than yields on longterm government debt then we should expect a recession in Australia

b. If the liquidity premium hypothesis is true, then forward rates are an unbiased measure of investors expectations about future interest rates.

True or False. Explain

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