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One key assumption for the expectations theory is that O A. Buyers of bonds don't prefer bonds of one maturity over another O B. Buyers

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One key assumption for the expectations theory is that O A. Buyers of bonds don't prefer bonds of one maturity over another O B. Buyers of bonds prefer bonds of one maturity over another. O C. Risk-neutral investors have long desired holding periods. O D. Risk loving investors have long desired holding periods. Previous page 11 12 13 14 15 of 38 In a business cycle expansion: O A. Interest rates always fall. O B. The bond supply curve shifts to the left. O C. Businesses borrow less. O D. The bond demand curve shifts to the right. Previous page 12 13

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