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Basic Question 5 of 5

The more stable the economic growth, the ______ the real risk-free interest rates.

A. higher
B. lower

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Edward Liu

Edward Liu

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.