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Assume that inflation is expected to decline steadily in the future, but that the real risk-free rate, r, will emain constant. Which of the following

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Assume that inflation is expected to decline steadily in the future, but that the real risk-free rate, r", will emain constant. Which of the following statements is CORRECT, other things held constant? 0 a. If inflation is expected to decline, there can be no maturity risk premium. OD. The expectations theory cannot hold if inflation is decreasing. 0 c. If there is a positive maturity risk premium, the Treasury yseld eure must be upward sloping d. If the pure expectations theory holds, the Treasury yield curve must be downward sloping

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