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The Theory Which Argues That the Risk-Free Interest Rate Is

Question 117

Multiple Choice

The theory which argues that the risk-free interest rate is determined by the interaction of the demand for credit and the nation's supply of credit is known as the:


A) Classical Theory of Interest Rates
B) Liquidity Preference Theory of Interest Rates
C) Efficient market hypothesis
D) Efficient Markets Theory
E) None of the above

Correct Answer:

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