Which of These Is NOT a Theory That Explains the Shape

question 4

Multiple Choice

Which of these is NOT a theory that explains the shape of the term structure of interest rates?

• A) liquidity theory
• B) market segmentation theory
• C) short-term structure of interest rates theory
• D) unbiased expectations theory

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Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.

Sales Increase

The rise in the volume or amount of sales or revenue a company achieves in a specific period compared to a previous period.

Advertising Campaign

A series of advertisement messages in various media that share a single idea and theme intended to achieve marketing objectives.

Net Operating Income

A measure of a company's profitability, calculated as the gross revenue minus operating expenses, excluding taxes and interest.