preferred habitat theory
preferred habitat theory
Glossary of money, banking and financial markets
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Economics
Definition of preferred habitat theory
preferred habitat theory: A theory that is closely related to liquidity premium theory, in which the interest rate on a long-term bond equals an average of short-term interest rates expected to occur over the life of the long-term bond plus a positive term premium.
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Glossary of money, banking and financial markets
Economics money banking and financial market glossary index of terms
Definition and meaning of preferred habitat theory
Meaning of preferred habitat theory
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