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Which is the best statement A. The risk premium (RP) = Nominal rate (r) + Risk free rate (rf) B. Long term rates are generally
Which is the best statement
A. The risk premium (RP) = Nominal rate (r) + Risk free rate (rf) |
B. Long term rates are generally more sensitive to macro factors than short term rates |
C. During recessions, both the demand for money and inflation tend to fall while money supply is increased |
D. During periods of high inflation, the general tendency is towards flat interest rates |
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