Based on the liquidity preference model of the term structure, the term structure must slope _________ because
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Question:
Based on the liquidity preference model of the term structure, the term structure must slope
_________ because longer maturity bonds are _________ liquid than shorter maturity bonds.
Group of answer choices
a. downward; less
b. upward; less
c. downward; more
d. upward; more
Expert Answer:
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