What is the market prediction about the movement of future short-term interest rates?
short maturities ["remain unchanged", "increase", "decrease"]
longer maturities ["increase", "remain unchanged", "decrease"]
b) What might the yield curve indicate about the market's prediction for the inflation rate in the future? Explain.
Interest rates and expected inflation move in ["the same", "opposite"] directions. The yield curve suggests the market expects the inflation rate to ["decrease", "increase", "remain unchanged"] in the short-term and [long2] in the longer-term.