Economics Homework Help

FIN 683 Ashford University Investment Liquidity Preference Theory Discussion

 

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Choose one of the following traditional interest rate theories to discuss:

  • Local Expectations Theory
  • Liquidity Preference Theory
  • Segmented Markets Theory
  • Preferred Habitat Theory

Describe the underlying economic factors that the theory indicates impacts the shape of the yield curve. Additionally, identify one strength and one weakness of the theory.