Some Researchers Believe the Expectations Theory Needs to Be Modified

Multiple Choice

Some researchers believe the expectations theory needs to be modified in order to reflect

A) liquidity premiums.
B) that lenders may have some preference for either long- or short-term securities and hence not be indifferent between the two.
C) the tendency of borrowers to prefer longer term securities so they don't have to issue and reissue short term securities.
D) All of the above are true.