4. (18 points) If a yield curve looks like the one shown in the figure 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 Yield to Maturity the inflation rate in the future? Term to Maturity If the bond yield curve indicates an economic slowdown, investors might move their money into defensive assets that traditionally do well during a recession. If the yield curve becomes steep, this might signal future inflation