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If a financial institution has a carry trade position, the greatest profit will result if A. the yield curve flattens with a decrease in long-term

If a financial institution has a carry trade position, the greatest profit will result if

  • A. the yield curve flattens with a decrease in long-term rates

  • B. the yield curve flattens with an increase in all interest rates

  • C. the yield curve steepens with an increase in long-term rates

  • D. the Fed begins to tighten due to rising inflation fears

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