Which of the following statements is true?
A) The long- term interest rates are the sum of the current short- term interest rate and the expected future short- term rates.
B) The short- term interest rates are the average of the current long- term interest rate and the expected future short- term rates.
C) The long- term interest rates are independent of the current short- term interest rate and the expected future short- term rates.
D) The long- term interest rates are the average of the current short- term interest rate and the expected future short- term rates.
Correct Answer:
Verified
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