1. Using economic reasoning, all the following can explain why the yield on the 10-year Treasury note (the most prominent security in the approximately $23 trillion market for U.S. government debt) is about 1.8% currently and was about 1.8% on the eve of the pandemic in early 2020 and was about 1.8% a decade ago, even though inflation has skyrocketed to over 7% recently, EXCEPT ONE (mark that one):

__________ Investors expect inflation to return soon to the normal level of the last 10 years

__________ China and the EU have not chosen to enact the policies necessary to make either or both them a co-dominance place of safety

__________ Investors simply do not see enough opportunities for high-return/moderate-risk investment in the rest of the global capital markets

_________ The U.S. lacks economic dynamism and is expected to lack the ability to grow much at all over the coming decade.