D is corrent. If the yield curve is upward sloping, long-term rates are higher than short-term rates, including a belief that inflation will increase.
A is incorrect because downward sloping would mean inflation is expected to moderate over the inermediate and long run.
B is incorrect because a humped curve would mean inflation is expected in the intermediate period but is expected to moderate in the long run.
C is incorrect because flat would imply that inflation is expected to stay the same as it is currently.
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