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There is a sudden shock to the economy and as a result, the 1-year interest rate (short-term rate) decreases from 5.10 percent to 4.40 percent

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There is a sudden shock to the economy and as a result, the 1-year interest rate (short-term rate) decreases from 5.10 percent to 4.40 percent and the 10-year interest rate (long-term rate) decreases from 7.20 percent to 6.30 percent. Your supervisor has not seen the rate changes and will be meeting with a client later today. Your supervisor asks you for an explanation on which interest rate decreased more, the 1-year interest rate or the 10-year interest rate. What would you tell him? Explain your

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