Question: 5 points 1. Is a flat yield curve consistent with the liquidity preference theory? Explain in details. 15 points 2. Is an upward sloping yield

5 points 1. Is a flat yield curve consistent with the

5 points 1. Is a flat yield curve consistent with the liquidity preference theory? Explain in details. 15 points 2. Is an upward sloping yield curve inconsistent with the preferred habitat theory? Explain in details

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