Suppose the real risk-free rate is 2. 50% and the future rate of inflation is expected to be constant at 2. 80%. What rate of return would you expect on a 5-year treasury security, assuming the pure expectations theory is valid? disregard cross-product terms, i. E. , if averaging is required, use the arithmetic average.

We consume for various reasons. sometimes we buy in order to reduce suffering (medicine), or to give pleasure (movies), or to feel safer (a lock), to become wiser (education), or to be more comfortable (a chair). what is the one word used by economists that includes all these meanings? a. cost b. price c. demand d. benefit