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Pie
3 years ago
7

The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different ma

turities depends on the assumption that________.
1. Yiels curves usually slope downward
2. Yiels curves usually slope downward
3. Instruments with different maturities are perfect subtitute
4. Savers are usually risk averse
Business
1 answer:
lutik1710 [3]3 years ago
5 0

Answer:

i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.

Explanation:

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Answer:

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Explanation:

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In option C, capital inflows are increasing. This means that there would be an excess supply of money in the economy which can be converted into loanable funds. This would, therefore, push the supply curve to the right thereby reducing the real interest rate equilibrium.

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Answer:

WIDE

NARROW

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