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Why does the Liquidity Preference Model fail to explain any Term Structure other than upward sloping? Because liquidity does not change with maturity of bonds.

Why does the Liquidity Preference Model fail to explain any Term Structure other than upward sloping? Because liquidity does not change with maturity of bonds. Because liquidity diminishes with increasing maturity of bonds. Because liquidity increases with increasing maturity of bonds. The Liquidity Preference Model explains any Term Structure perfectly. None of these is true

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