According to the segmented markets theory, if most investors suddenly preferred to invest in short-term securities and most borrowers suddenly preferred to issue long-term securities, there would be
A) upward pressure on the yields of both short-term and long-term securities .
B) downward pressure on the yield of short-term securities .
C) downward pressure on the yield of long-term securities.
D) upward pressure on the yield of short-term securities .
Correct Answer:
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