Question: Which is the best statement During recessions, both the demand for money and inflation tend to fall while money supply is increased The risk premium

Which is the best statement
During recessions, both the demand for money and inflation tend to fall while money supply is increased
The risk premium (RP)= Nominal rate (r)+ Risk free rate (rf)
Long term rates are generally more sensitive to macro factors than short term rates
During periods of high inflation, the general tendency is towards flat interest rates
 Which is the best statement During recessions, both the demand for

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