Effect of crises on the yield curve

Reference no: EM131225912

Effect of Crises on the Yield Curve :

During some crises, investors shift their funds out of the stock market and into money market securities for safety, even if they do not fear rising interest rates.

Explain how and why these actions by investors affect the yield curve. Is the shift best explained by expectations theory, liquidity premium theory, or segmented markets theory?

Reference no: EM131225912

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