Question: Sometimes the term premium (or yield curve spread) is negative or inverted, meaning short term nominal rates are higher than long term nominal rates. Which

Sometimes the term premium (or yield curve spread) is negative or inverted, meaning short term nominal rates are higher than long term nominal rates. Which theory proposes that this occurs because investors simply have a high demand for long term securities based on the liabilities in their portfolios.

		Unbiased expectations theory
		Liquidity premium theory
		Market segmentations theory
		None of the above

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