Use the Following Figure to Answer the Question

Multiple Choice

Use the following figure to answer the question :

-The U-shaped yield curve in the figure above indicates that short-term interest rates are expected to

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