Question: If we observe that the 1 - year Treasury security rate is higher than the 2 - year Treasury security rate, what can we infer
If we observe that the year Treasury security rate is higher than the year Treasury security rate, what can we infer about the year rate expected one year from now?
The expected future rate is higher than the current year rate
The expected future rate is lower than the current year rate
The expected future rate is exactly the same as the current year rate
We don't know enough to answer this with confidence
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