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The market segmentation theory holds that A . an increase in demand for long - term borrowings leads to an inverted yield curve. B .
The market segmentation theory holds that
A an increase in demand for long term borrowings leads to an inverted yield curve.
B expectations about the future level of interest rates is the major determinant of the shape of the yield curve.
C the shape of the yield curve is always downsloping.
D the yield curve reflects the maturity preferences of financial institutions and investors.
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