Under the Liquidity Premium Theory a flat yield curve implies:
A)there is no risk premium for longer-term maturities.
B)short-term interest rates are expected to remain constant.
C)short-term interest rates are expected to decrease.
D)long-term interest rates are higher than short-term interest rates.

Question

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The Answer of Under the Liquidity Premium Theory a flat yield curve implies:
A)there is no risk premium for longer-term maturities.
B)short-term interest rates are expected to remain constant.
C)short-term interest rates are expected to decrease.
D)long-term interest rates are higher than short-term interest rates.

Under the Liquidity Premium Theory a Flat Yield Curve Implies