Because of an expected rise in interest rates in the future, a banker will likely
A) make long-term rather than short-term loans.
B) buy short-term rather than long-term bonds.
C) buy long-term rather than short-term bonds.
D) make either short or long-term loans; expectations of future interest rates are irrelevant.
B
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A) Keynesian B) Monetarist C) Classical D) All
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What will be an ideal response?
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