According to the Segmented Markets Theory, If Most Investors Suddenly

Multiple Choice

According to the segmented markets theory, if most investors suddenly preferred to invest in long-term securities and most borrowers suddenly preferred to issue short-term securities, there would be

A) upward pressure on the yield of long-term securities .
B) downward pressure on the yield of short-term securities .
C) downward pressure on the yield of long-term securities.
D) no change in the yield of short-term securities.