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:

Marigold

A common garden plant known for its bright orange, yellow, or mixed-color flowers, often used for ornamental purposes or as a natural pest deterrent.

U.S. Census Bureau

A federal agency responsible for collecting and analyzing data about the population and economy of the United States.

Illegal Immigrants

Individuals who enter or reside in a country without the necessary authorization or documents required by immigration laws.

Net Inflow

The difference between the total value of what enters a country, region, or market and the total value of what exits, typically measured over a specific period of time.