The Three Theories That Economists Have Developed to Explain the Shape

question 32

Multiple Choice

The three theories that economists have developed to explain the shape of the yield curve are

• A)the term premium theory, the pure expectations theory, and the default premium theory.
• B)the pure expectations theory, the term premium theory, and the segmented market theory.
• C)the segmented market theory, the default premium theory, and the inflationary expectations theory.
• D)the pure expectations theory, the inflationary expectations theory, and the term premium theory.

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