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Which of the following factors could make the forward rate experienced differ from the future short rate predicted? I. Liquidity premium II. Changes in inflation

Which of the following factors could make the forward rate experienced differ from the future short rate predicted?

I. Liquidity premium II. Changes in inflation expectations III. Changes in real rate

Select one: a. III only b. II only c. I, II, and III d. I only e. Both I and II

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