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Inflation is expected to increase in the future, but the real risk-free rate will remain constant. Which of the following statements is CORRECT, other things

Inflation is expected to increase in the future, but the real risk-free rate will remain constant. Which of the following statements is CORRECT, other things held constant?

a.

If the pure expectations theory holds, the Treasury yield curve must be downward sloping.

b.

If the pure expectations theory holds, the Corporate yield curve must be downward sloping.

c.

If the pure expectations theory holds, the Treasury yield curve must be upward sloping.

d.

If inflation is expected to increase, the maturity risk premium should be larger than inflation.

e.

If the pure expectation theory holds, the curve represented is abnormal.

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