Closely related to the ________ is the preferred habitat theory, which takes a somewhat less direct approach to modifying the expectations hypothesis but comes to a similar conclusion.

Closely related to the ________ is the preferred habitat theory, which takes a somewhat less direct approach to modifying the expectations hypothesis but comes to a similar conclusion.



A) liquidity premium theory
B) expectations theory
C) market segmentation theory
D) supply theory


Answer: A) liquidity premium theory


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