Explain what the term premium and risk premium are and why they cause the interest rates that

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Explain what the term premium and risk premium are and why they cause the interest rates that affect the cost of borrowing by households and businesses to differ from the federal funds rate.

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:09 AM

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Explain what the term premium and risk premium are and why they cause the interest rates that

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The term premium is the average difference between the longterm interest rates such as on a Treasury ...View the full answer

Macroeconomics

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