(Solved): A U.S. Treasury yield curve is plotted in the following graph: Based on an upward-sloping norma ...

A U.S. Treasury yield curve is plotted in the following graph: Based on an upward-sloping normal yield curve as shown, which of the following statements is correct? Pure expectations theory must be correct. If the pure expectations theory is correct, future short-term rates are expected to be higher than current short-term rates. There is a positive maturity risk premium. Inflation must be expected to increase in the future.