请解释下这句话的意思。

问题如下：

Based on Exhibit 1 and Wakuluk’s assumptions about short-term rates and expected inflation, short-term rates in Country X are most likely to be:

选项：

A.

low and bottoming

B.above average and rising C.approaching a peak

解释：

Correct Answer: A

A is correct. Country X is predicted to be in the initial recovery phase of the business cycle, which suggests short-term (money market) rates are low or bottoming. Inflation is procyclical. It accelerates in the later stages of the business cycle when the output gap has closed, and it decelerates when a large output gap puts downward pressure on wages and prices, which often happens during a recession or the early years afterward. As long as short-term interest rates adjust with expected inflation, cash is essentially a zero-duration, inflation protected asset that earns a floating real rate, which is typically procyclical. Wakuluk assumes short-term interest rates adjust with expected inflation and are procyclical. Tus, short-term rates are most likely to be low and bottoming if Country X is in the initial recovery phase of the business cycle.

A正确。预计X国将处于商业周期的初始复苏阶段，这表明短期(货币市场)利率处于低位或触底。通货膨胀是顺周期的。在商业周期的后期，当产出缺口缩小时，它会加速，当巨大的产出缺口给工资和价格带来下行压力时，它会减速，这种情况通常发生在衰退期间或衰退后的最初几年。只要短期利率随预期通胀调整，现金本质上就是一种零期限、通胀保值的资产，它的实际利率是浮动的，这通常是顺周期的。Wakuluk假设短期利率随预期通货膨胀而调整，并且是顺周期的。因此，如果某国处于商业周期的初始复苏阶段，短期利率很可能处于低位并触底。