A quiz answer implied that part of Capital Market Theory is that interest rates don’t change over time. Is that true? Because if it is, that sounds like a rather generous assumption.
Seems absurd.
Where’d you see this?
You’ve probably misunderstood. Real rates between countries should equalize over long run (in theory).
I could have sworn I saw it on a Kaplan Schweser quiz. I’ll post it when I find it. Up until I saw that question, I had never even seen that suggested.