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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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