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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. Forward rates depict the

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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. Forward rates depict the expectations for the future spot rates for the respective future period b. The liquidity premium increases with maturity c. Short and long-term interest rates are perfect substitutes

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