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Suppose you are in charge of the financial department of your company and you have to decide whether to borrow short or long term. Checking

Suppose you are in charge of the financial department of your company and you have to decide whether to borrow short or long term. Checking the news, you realize that the government is about to engage in a major infrastructure plan in the near future.

a. Predict what will happen to interest rates.

b. Will you advise borrowing short or long term?

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