Which of the following is not a valid theory that attempts to explain the shape of the term structure of interest rates?

Question

Quizplus · Accepted Answer

The Fisher Effect theory is a valid theory that attempts to explain the shape of the term structure of interest rates. The other three theories, unbiased expectations theory, liquidity preference theory, and market segmentation theory, are also valid theories that attempt to explain the shape of the term structure of interest rates.

Which of the Following Is Not a Valid Theory That