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According to the market segmentation theory of the term structure of interest rates a . The slope of the yield curve becomes flatter as the
According to the market segmentation theory of the term structure of interest rates
a The slope of the yield curve becomes flatter as the supply of securities increases in the shortterm market and
increases in the longterm market
b The slope of the yield curve becomes flatter as the supply of securities decreases in the shortterm market and
decreases in the longterm market
c Investors are indifferent between securities of different maturities
d The preference for particular maturities can affect the prices and yields of securities with different maturities and
therefore the shape of the yield curve
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