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Support for the addition of a liquidity premium to the expectations theory is derived from: Select one: a. the slope of the observed normal yield

image text in transcribed Support for the addition of a liquidity premium to the expectations theory is derived from: Select one: a. the slope of the observed normal yield curve is steeper than that of expectation theory. b. the slope of the observed normal yield curve is flatter than that of expectation theory. c. the liquidity premium decreases over time. d. in times of tight monetary policy an inverse yield curve becomes more inverse

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