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Suppose that the 10 year yield, calculated under Unbaised Expectations Theory, is 7%. What do you think the same rate would be under Liquidity Preference

Suppose that the 10 year yield, calculated under Unbaised Expectations Theory, is 7%. What do you think the same rate would be under Liquidity Preference Theory if the Yield Curve is normal? Explain why, explicitly to take full credits

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