As the Economy Moves Through a Business Cycle, Which of the Following

question 36

Multiple Choice

As the economy moves through a business cycle, which of the following "term structure of interest rates" theories dominates the shape of the yield curve.

• A) The expectations hypothesis.
• B) The market segmentation theory.
• C) The liquidity premium theory.
• D) None of these theories dominate the shape of the yield curve.

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