The Existence of an Upward Sloping Yield Curve Proves That

The existence of an upward sloping yield curve proves that the _____ is correct, because an upward sloping curve necessarily implies that lenders will lend short-term funds at lower rates than they lend long-term funds.

A) liquidity preference theory
B) expectations theory
C) market segmentation theory
D) open market theory
E) reinvestment theory