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