The Theory That Explains Only the Tendency for the Yield

question 11

Multiple Choice

The theory that explains only the tendency for the yield curve to be upward sloping is

• A) the investor perception theory.
• B) the expectations hypothesis.
• C) the market segmentation theory.
• D) the liquidity preference theory.

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Definitions:

Force Field Model

A framework proposed by Kurt Lewin to analyze the factors (forces) that influence the change process, with forces aiding change termed as driving forces and those opposing as restraining forces.

Restraining Forces

Factors that hinder or limit the process of change within an organization or individual's behavior.

Changed Behaviors

Modifications or adjustments in one's actions or reactions as a result of experiences or interventions.

Lewin's Change Model

A theoretical model for understanding organizational or personal change, involving three stages: unfreezing, changing, and refreezing.