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Which of the following statements is false ? Households are the largest (net) supplier of funds in the U.S. A downward sloping yield curve reflects
Which of the following statements is false?
Households are the largest (net) supplier of funds in the U.S.
A downward sloping yield curve reflects markets expectations that future short-term interest rates will fall.
Maturity premium is zero when the yield curve is flat.
Tax policy in the U.S. favors borrowing, not savings.
The yield curve cannot be downward sloping under the liquidity premium theory.
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