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Which statement(s) are true regarding the liquidity premium theory: Multiple Choice States that long-term rates are equal to geometric averages of current and expected short-term
Which statement(s) are true regarding the liquidity premium theory: Multiple Choice States that long-term rates are equal to geometric averages of current and expected short-term rates, Liquidity premiums that increase with maturity result in upward sloping yield curves. An upward sloping yield curve may reflect investor's expectations that future short-term rates will be flat. All of the above
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