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According to liquidity preference theory, which of the following statements is true regarding the impact of a liquidity premium on the slope of the yield
According to liquidity preference theory, which of the following statements is true regarding the impact
of a liquidity premium on the slope of the yield curve?
a It places additional upward pressure on the slope.
b It results in a downwardsloping curve.
C It offsets the impact of interest rate expectations.
d It has no impact on the slope.
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