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According to the liquidity preference theory of the term structure of interest rates, an increase in the yield on long-term corporate bonds versus short-term bonds

According to the liquidity preference theory of the term structure of interest rates, an increase in the yield on long-term corporate bonds versus short-term bonds could be due to ________.

Question 18 options:

A)

an increase in expected interest rate volatility

B)

a decline in future inflation expectations

C)

declining liquidity premiums

D)

an expectation of an upcoming recession

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