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The current short-term interest rate and expectations about future short-term interest rates are used to explain the shape and changes in shape of the yield

The current short-term interest rate and expectations about future short-term interest rates are used to explain the shape and changes in shape of the yield curve. Do you agree or disagree with this statement?

  1. If you agree, which theory can support your argument, explain.

If you disagree, provide any theory to justify your arguments?

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