Business, 17.03.2020 03:02 Dtex

Classify each statement as either true or false.
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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Classify each statement as either true or false.
1. If two short-term assets offer different i...

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