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10. On May 11, 2020, Federal Reserve Bank of San Francisco (FRBSF) issued an research report titled as Coronavirus and the Risk of Deflation. In

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10. On May 11, 2020, Federal Reserve Bank of San Francisco (FRBSF) issued an research report titled as "Coronavirus and the Risk of Deflation". In this report, FRBSF analyzes as below. The pandemic caused by COVID-19 represents an unprecedented negative shock to the global economy that is likely to severely depress economic activity in the near term. The coronavirus shock may reduce aggregate demand enough to lower the U.S. inflation rate by as much as 2 percentage points. We focus on the risk of a significant drop in inflation from its current level. To assess this risk, we use yield curve models of nominal and real government bond yields from four major countries: Canada, France, Japan, and the United States and general corporate purposes." According to the economy outlook of FRBSF as above, the term structure of interest rates will most likely be: A. upward sloping. B. flat. C. humped. D. downward sloping E. double-humped

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