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  3. Study Set
    Principles of Macroeconomics Study Set 12
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    Exam 10: Money, the Federal Reserve, and the Interest Rate
  5. Question
    If the Interest Rate on a 2-Year Security Was Higher
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If the Interest Rate on a 2-Year Security Was Higher

Question 118

Question 118

True/False

If the interest rate on a 2-year security was higher than the average expected interest rate on consecutive 1-year securities, people would be indifferent as to which security they held.

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