Market segmentation theory would explain an upward sloping yield curve as a high demand for short-term securities relative to the supply.

Name: Market segmentation theory would explain an upward sloping yield curve as a high demand for short-term securities relative to the supply.
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Question

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Market segmentation theory explains an upward sloping yield curve as a result of different supply and demand conditions in separate maturity segments, not specifically due to high demand for short-term securities.

Market Segmentation Theory Would Explain an Upward Sloping Yield Curve