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With respect to the liquidity preference theory, which of the following are false in explaining the decrease in the yield on long-term corporate bonds versus
With respect to the liquidity preference theory, which of the following are false in explaining the decrease in the yield on long-term corporate bonds versus short-term bonds?
I) Increase in future inflation expectations II) Decrease in expected interest rate volatility III) Expectation of an upcoming market rally a) I only b) II only c) I and II only d) I and III only e) I, II and III only
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