Question: Question 2: An increase in forward interest rates by 1% without a change in short-term interest rates will, most likely, lead to A) A decrease

Question 2: An increase in forward interest rates by 1% without

Question 2: An increase in forward interest rates by 1% without a change in short-term interest rates will, most likely, lead to A) A decrease in long-term interest rates by more than 1% B) A decrease in long-term interest rates by exactly 1% C) A decrease in long-term interest rates by less than 1% D) No change in long-term interest rates E) An increase long-term interest rates by less than 1% F) An increase in long-term interest rates by exactly 1% G) An increase in long-term interest rates by more than 1%

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