Business, 13.12.2019 21:31 boxergirl2161

1. if two short-term assets offer different interest rates, then investors will move their wealth towards the asset with the lower return.
2. there is no practical difference between long-term interest rates and short-term interest rates.
3. money demand is affected by short-term interest rates and not long-term interest rates.
4. interest rates on financial assets that mature in ten months or less are long-term interest rates.
5. the opportunity cost of holding money falls when short-term interest rates fall.

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