Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Other things held constant, the "liquidity preference theory" would generally lead to an upward sloping yield curve.
B) Other things held constant, the "market segmentation theory" would generally lead to an upward sloping yield curve.
C) Other things held constant, the "expectations theory" would generally lead to an upward sloping yield curve.
D) Other things held constant, the yield curve under "normal" conditions would be horizontal (i.e., flat) .
E) Other things held constant, a downward sloping yield curve would suggest that investors expect interest rates to increase in the future.