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    Exam 3: Structure of Interest Rates
  5. Question
    Assume the Yield Curve Is Flat
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Assume the Yield Curve Is Flat

Question 44

Question 44

Multiple Choice

Assume the yield curve is flat. If investors flood the short-term market and avoid the long-term market, they may cause the yield curve to


A) remain flat.
B) become upward sloping.
C) become downward sloping.
D) none of the above

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