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Suppose that the short-term spit interest rate is expected to remain unchanged. according to the liquidity preference hypothesis the yield curve should be upward-sloping the

Suppose that the short-term spit interest rate is expected to remain unchanged. according to the liquidity preference hypothesis

the yield curve should be upward-sloping

the yield curve should be humped

the yield curve should be flat

interest rate expectations do not effect the shape of yield curve

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