Question: A trader puts on a so-called carry trade position (borrowing using short-term financing to purchase longer-term instruments). The carry trade will earn the highest return

A trader puts on a so-called "carry trade" position (borrowing using short-term financing to purchase longer-term instruments). The carry trade will earn the highest return if O long-term interest rates rise O short-term interest rates rise short-term interest rates fall long-term interest rates fall

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