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True or False. According to the Pure Expectations Theory, other things being equal, an expected increase in interest rates will increase the demand for long-term
True or False. According to the Pure Expectations Theory, other things being equal, an expected increase in interest rates will increase the demand for long-term funds by borrowers and decrease in the supply of long-term funds by investors. As a result, the shape of the yield curve will be an upward sloping yield curve.Provide at least five sentences of Explanation or calculation to support your answer.
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