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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    The Practice of Borrowing Short and Lending Long
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The Practice of Borrowing Short and Lending Long

Question 134

Question 134

Multiple Choice

The practice of borrowing short and lending long


A) creates liquidity.
B) pools risk.
C) minimizes the cost of monitoring borrowers.
D) All of the above answers are correct.

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