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Which of the following statements is false, if the Expectations Theory for the term structure of interest rates is valid? a. Short and long-term interest

image text in transcribed Which of the following statements is false, if the Expectations Theory for the term structure of interest rates is valid? a. Short and long-term interest rates are perfect substitutes b. An upward sloping yield curve always corresponds to expectations for increasing interest rates in the future c. Forward rates depict the expectations for the future spot rates for the respective future period d. The liquidity premium increases with maturity

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