Question: If forward interest rate increases while neither current short-term nor expected future short-term zero rates change, which of the following theories of term structure of

If forward interest rate increases while neither current short-term nor expected future short-term zero rates change, which of the following theories of term structure of interest rates MUST be violated?

Expectation theory

Market segmentation theory

Liquidity preference theory

At least two of the above answers are correct

None of the above

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