Task: Which of the following would most likely increase the slope of the yield curve?
1. An increase in the rate that prices are expected to increase over the next 30 years.
2. A decrease in the risk-free interest rate.
3. An increase in the risk-free interest rate, where the increase is the same amount for all maturity dates (e.g., a 1% increase for all maturities).
4. An increase in unemployment
5. A massive increase in short-term interest rates and no increase to long-term rates.
6. None of the above