Use the Following Figure to Answer the Question

question 87

Multiple Choice

Use the following figure to answer the question :
-The mound-shaped yield curve in the figure above indicates that the inflation rate is expected to

• A)remain constant in the near-term and fall later on.
• B)fall moderately in the near-term and rise later on.
• C)rise moderately in the near-term and fall later on.
• D)remain unchanged in the near-term and rise later on.