subject
Business, 20.09.2019 02:10 Pizzapegasus1

Due to a recession, expected inflation this year is only 2%. however, the inflation rate in year 2 and thereafter is expected to be constant at some level above 2%. assume that the expectations theory holds and the real risk-free rate (r*) is 3.5%. if the yield on 3-year treasury bonds equals the 1-year yield plus 3.5%, what inflation rate is expected after year 1? round your answer to two decimal places.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 08:30
Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price
Answers: 1
question
Business, 22.06.2019 09:00
Almost 80% of business owners are clueless about the competition, resulting in a) lost market share and customers. b) needless lawsuits. c) uninspired products. d) lack of perseverance
Answers: 2
question
Business, 22.06.2019 11:30
1.     regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c   incorrect
Answers: 2
question
Business, 22.06.2019 16:00
Which plan offers a tax-free education?
Answers: 1
You know the right answer?
Due to a recession, expected inflation this year is only 2%. however, the inflation rate in year 2 a...
Questions
question
Mathematics, 03.11.2020 21:50
question
Mathematics, 03.11.2020 21:50
question
Physics, 03.11.2020 21:50
question
Mathematics, 03.11.2020 21:50
question
Mathematics, 03.11.2020 21:50