Which of the following statements is most correct? Other things held constant. the yield curve under "normal" conditions would be horizontal (i.e.. flat). the "market segmentation theory" would generally lead to an upward sloping yield curve. the "expectations theory would generally lead to an upward sloping yield curve. the "liquidity preference theory" would generally lead to an upward sloping yield curve. a downward sloping yield curve would suggest that investors expect interest rates to increase in the future