Which of the Following Theories Can Be Used to Explain

question 68

Multiple Choice

Which of the following theories can be used to explain the shape of both inverted and normal yield curves?

• A)The expectations theory only
• B)The liquidity preference theory only
• C)The market segmentation theory only
• D)Both the expectations theory and the liquidity preference theory
• E)Both the expectations theory and the market segmentation theory

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