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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?
- If you agree, which theory can support your argument, explain.
If you disagree, provide any theory to justify your arguments?
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