As the U.S. economy recovered from the"Great Recession" of 2007-2009, it was widely anticipated that the Fed would raise the federal funds rate.

Suppose the current federal funds rate is 1percent, and that this rate is expected to prevail for one more year.Then, the expectation is that the Fed will raise the federal funds rate by 1 percent each year for 4years, reaching 5 percent in year five and then maintaining the federal funds rate at that level for another 5 years.

Complete the following table with the interest rates for the next 10 years. (Enter your responses as whole numbers.)

Year Rate%

1 _

2 _

3 _

4 _

5 _

6 _

7 _

8 _

9 _

10 _