Which of the following statements is most correct? Select one: a. If expected inflation increases, interest rates are likely to increase. b. If companies have few productive opportunities, interest rates are likely to increase. c. If the risk of the project increases, interest rates are likely to decrease. d. If individuals increase their savings rate, interest rates are likely to increase. Suppose the rate of return on a 10-year T-bond is currently 9.00% and that on a 10-year Treasury Inflation Protected Security (TIP) is 3.50%. Suppose further that the maturity risk premium on a 10-year T-bond is 2.9%, that no maturity risk premium is required on TIPs, and that no liquidity premiums are required on any T-bonds. Given this data, what is the expected rate of inflation over the next 10 years? Select one: a. 6.00% b. 3.60% c. 1.60% d. 4.60% e. 2.60%