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When is the yield curve downward sloping? a. Economy is expected to grow fast b. Liquidity premiums are bigger, the bigger the maturity c. Supply
When is the yield curve downward sloping?
a. Economy is expected to grow fast b. Liquidity premiums are bigger, the bigger the maturity
c. Supply of short-maturity securities falls short of the supply of long- maturity securities (assuming the same demand curve for both)
d. Demand of short-maturity securities exceeds the demand of long-maturity securities (assuming the same supply for both)
e. Supply of short-maturity securities exceeds the supply of long-maturity securities (assuming the same demand curve for both)
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