Indicate which of the following are TRUE, and if FALSE, modify the statement to make it TRUE? (a) Since World War II, there has never been an inversion of the Treasury yield that was not followed by recession in the United States. (b) An inversion of the yield curve can occur if the markets anticipate a strong recession coming up since it raises expected inflation due to a weak consumer economy and also increases real interest rates due to weak loan demand (c) According to the Expectations Hypothesis of the yield curve that INCLUDES the liquidity premium, if the actual yield curve that you observe in the market is flat, the markets are expecting short rates to neither rise nor fall.