The Segmented Markets Theory

Multiple Choice

The segmented markets theory

A) explains upward-sloping yield curves as resulting from the demand for long-term bonds being high relative to the demand for short-term bonds.
B) explains upward-sloping yield curves as resulting from the demand for long-term bonds being low relative to the demand for short-term bonds.
C) explains upward-sloping yield curves as resulting from the favorable tax treatment of long-term bonds.
D) is unable to account for upward-sloping yield curves.