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Under the Expectations Theory,investors Expecting Interest Rates to Rise Will

Question 19

Multiple Choice

Under the expectations theory,investors expecting interest rates to rise will:


A) invest more now in long term bonds rather than in short term bonds.
B) invest more now in short term bonds rather than in long term bonds.
C) invest more now in Treasury bonds rather than in corporate bonds.
D) invest more now in corporate bonds rather than in Treasury bonds.

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