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According to the Liquidity Premium View of the Yield Curve

Question 56

Multiple Choice

According to the liquidity premium view of the yield curve, most yield curves should have a ____ slope. Which choice below correctly fills in the blank in the preceding sentence?


A) Negative
B) Positive
C) Zero
D) Either positive or zero
E) The yield curve's slope is indeterminate according to the liquidity premium view

Correct Answer:

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