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Business, 22.10.2020 16:01 Netnee

Which of the following statements is most correct? Select one: a. Other things equal, the interest rate in an area with young population would likely be lower than that in an area with old population. b. If the Fed maintains a policy to expand money supply for several years, the entire yield curve will fall due to a higher expected future inflation. c. Short-term interest rates are less volatile than long-term interest rates because the Fed operates mainly in the long-term sector. d. Immediately after the Fed announces to expand the money supply, the long-term interest rate will drop while the short-term interest rates will raise due to a higher expected future inflation. e. An upward-sloping Treasury yield curve suggests that long-term interest rates are higher than short-term interest rates.

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