If Inflation Is Expected to Steadily Decrease in the Future

question 86

Multiple Choice

If inflation is expected to steadily decrease in the future, the term structure of interest rates will most likely be:

• A)upward sloping.
• B)flat.
• C)humped.
• D)downward sloping.
• E)double-humped.

---

Definitions:

Efficient

A state of productivity in which resources are used in the most cost-effective way without waste, achieving the highest possible output from a given input.

Equitable

Characterized by fairness or impartiality; just and right in considering the rights and responsibilities of all parties involved.

Efficiency

The extent to which resources are used optimally to achieve the desired output, often maximizing productivity while minimizing waste.

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.