You and a friend are reading The Wall Street Journal and notice that the Treasury yield curve

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You and a friend are reading The Wall Street Journal and notice that the Treasury yield curve is slightly upward sloping. Your friend comments that all looks well for the economy but you are concerned that the economy is heading for trouble. Assuming you are both believers in the liquidity premium theory, what might account for your difference of opinion?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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