During QE2, in which the Federal reserve engaged in large-scale asset purchases, long-term interest rates rose (and bond prices fell), and upon the end of QE2 long-term interest rates fell (bond prices rose). Which theory(ies) of the term structure is(are) consistent with this behavior?

• A. expectations hypothesis

• B. market segmentation hypothesis

• C. liquidity preference hypothesis

• D. a and b

• E. a and c