Multiple Choice
The segmented markets theory can explain
A) why yield curves usually tend to slope upward.
B) why interest rates on bonds of different maturities tend to move together.
C) why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high.
D) why yield curves have been used to forecast business cycles.
Correct Answer:

Verified
Correct Answer:
Verified
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