Question: If a yield curve looks like the one shown in figure (b) below, what is the market predicting about the movement of future short-term interest

If a yield curve looks like the one shown in figure (b) below, what is the market predicting about the movement of future short-term interest rates? What might the yield curve indicate about the market€™s predictions for the inflation rate in thefuture?

Yield to Maturity Term to Maturity

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