1. 1. Under the pure expectations hypothesis and constant real interest rates for different maturities, an upward-sloping yield curve would indicate __________________.

• a) expected increases in inflation over time
• b) expected decreases in inflation over time
• c) the presence of a liquidity premium
• d) that the equilibrium interest rate in the short-term part of the market is lower than the equilibrium interest rate in the long-term part of the market