Liquidity preference theory suggests that when bond investors move from short-term securities to long term securities a they believe that they can earn a higher rate of return over the long term by buying bonds with longer maturities than they could by buying a series of short-term investments. Ob they are expecting long-term rates to rise. Oc. they want to be protected from the risk of falling bond prices in the future. Od they are expecting short-term rates to fall Finis Time e W K