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Which of the following statement is true? A.Interest rates in the U.S. were extremely low in the early 1980s because of high maturity premiums B.
Which of the following statement is true?
A.Interest rates in the U.S. were extremely low in the early 1980s because of high maturity premiums
B. If interest is compounded more than once a year, the APR would be lower than the EAR
C. the inflation premium is estimated by the author to be the smallest component of nominal interest rates in the period 1950-1999
D.Ceteris paribus, the higher the inflation, the higher the real interest rate.
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