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Basic Question 1 of 5
A higher GDP growth should lead to an increase in ______.
B. real default-free interest rate
C. risk premiums
A. inflation rate
B. real default-free interest rate
C. risk premiums
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Learning Outcome Statements
explain the relationship between the long-term growth rate of the economy, the volatility of the growth rate, and the average level of real short-term interest rates;
CFA® 2025 Level II Curriculum, Volume 6, Module 37.