Question from Volume 2 exam
An economist has forecast that the term structure of interest rates will remain perfectly flat. According to the liquidity preference theory, the economist’s forecast implies that future shortterm interest rates will:
A. decrease over time.
B. increase over time.
C. equal current shortterm interest rates.
I thought the correct answer would be B, but it’s not? Please explain. |
发表于 2013-4-8 17:44
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