In the Next Two Years,the Expected Inflation Rates Are 1

question 1

Multiple Choice

In the next two years,the expected inflation rates are 1 percent and 2 percent,respectively,and the real interest rates are expected to be 4 percent and 4 percent,respectively.Using this information,calculate the two-year interest rate yield as of now.

• A)1.88 percent.
• B)2.74 percent.
• C)4.94 percent.
• D)5.56 percent.

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Definitions:

Anterior Cerebral Artery

A major artery supplying oxygenated blood to most midline portions of the frontal lobes and superior medial parietal lobes of the brain.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and for managing higher level executive functions.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Systolic Pressure

The maximum arterial blood pressure during heart contraction, measured in millimeters of mercury (mmHg).