Business, 30.11.2020 18:40 izzynikkie

Under the liquidity premium theory the shape of the yield curve depends on: a. the relative return of investments in common stocks versus investments in corporate bonds.
b. the size of the federal government's budget deficit.
c. government tax treatment of long-term versus short-term bonds.
d. the expected pattern of future short-term rates and the size of the term premium at each maturity.

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Under the liquidity premium theory the shape of the yield curve depends on: a. the relative return...