21. On February 17, 2022 the US 10-Year Treasuries hit 3.81%, a 13% increase over the rates roughly one month ago (January 18) when the US-10 Year was at 3.37%. (a) Assume that the real interest rate was 1.25% on January 18 and that the real in- terest rate was 1.46% on February 17. Over this time, what happened to inflation expectations? (b) What do you think is the underlying factor that has driven interest rates up over the last month? Explain by using one of our theories of interest rates. (c) Does the current interest rate suggest that time-preference is high or low? Why?

21. On February 17, 2022 the US 10 -Year Treasuries hit 3.81%, a 13% increase over the rates roughly one month ago (January 18 ) when the US-10 Year was at 3.37%. (a) Assume that the real interest rate was 1.25% on January 18 and that the real interest rate was 1.46% on February 17 . Over this time, what happened to inflation expectations? (b) What do you think is the underlying factor that has driven interest rates up over the last month? Explain by using one of our theories of interest rates. (c) Does the current interest rate suggest that time-preference is high or low? Why