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 the inflation rate is expected to

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