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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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