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According to Pure Expectations Theory, If Interest Rates Are Expected

Question 43

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:

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