According to the liquidity premium theory of the term, Business Economics

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According to the liquidity premium theory of the term

According to the liquidity premium theory of the term structure, a flat yield curve indicatesthat short-term interest rates are expected to ----decline moderately in the future.

Can you explain why the short term interest rate is expected to decline? What is the relationship between the yield curve and the interest rate?

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Business Economics: According to the liquidity premium theory of the term

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Business Economics: According to the liquidity premium theory of the term

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