Multiple Choice
According to pure expectations theory, if interest rates are expected to decrease, there will be ____ pressure on the demand for short-term funds by borrowers and ____ pressure on the demand for long-term funds issued by borrowers.
A) upward; upward
B) downward; downward
C) upward; downward
D) downward; upward
Correct Answer:

Verified
Correct Answer:
Verified
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