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16 October, 18:48

The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates. A. trueB. false

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  1. 16 October, 18:58
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    The answer is True

    Explanation:

    "The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates" is true statement.

    The expectation theory asserts that a one - year bond is purchased today will have the same yield and effect as the one - year bond purchased after five years. Both long term and short terms estimates are similar to each other.
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