The market segmentation theory proposes

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The market segmentation theory proposes that,

a. the yield curve is upward sloping since lenders prefer shorter-term loans

b. the debt market is represented by a single supply/demand diagram

c. the debt market is represented by a series of supply/demand diagrams each representing a different term, and that these operate independently of one another

d. the yield curve is inverted because lenders prefer longer-term loans at lower rates.

Reference no: EM131010900

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