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    Fundamentals of Corporate Finance Study Set 18
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    Exam 8: Bond Valuation and the Structure of Interest Rates
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    The Real Rate of Interest Varies with the Business Cycle
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The Real Rate of Interest Varies with the Business Cycle

Question 79

Question 79

True/False

The real rate of interest varies with the business cycle, with the highest rates seen at the end of a period of business expansion and the lowest at the bottom of a recession.

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