Question: please hurry Choose the correct statement An increase in interest rates increases the demand for loanable funds. According to the liquidity premium theory, investors preferring

 please hurry Choose the correct statement An increase in interest rates

please hurry

Choose the correct statement An increase in interest rates increases the demand for loanable funds. According to the liquidity premium theory, investors preferring long-term bonds over short-term bonds would require lower liquidity premium As the liquidity of corporate bonds decrease, the risk premium required on those bonds decrease as well. The unbiased expectations hypothesis of the term structure posits that long- term interest rates are unrelated to expected future short-term rates. According to the market segmentation theory, short-term investors will not normally switch to intermediate-or long-term investments without adequate compensation

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