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Basic Question 19 of 23

If inflation is expected to rise, companies would prefer to borrow at a ______ rate, and investors would prefer to lend at a ______ rate.

A. variable, fixed
B. variable, variable
C. fixed, variable

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Craig Baugh

Learning Outcome Statements

explain liquidity and compare issuers' liquidity levels

CFA® 2024 Level I Curriculum, Volume 2, Module 4.