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Suppose the Treasury interest rates are as follows: 1-year rate = 3%, 5-year rate = 2.5%, 10-year rate= 2%, 30-yer rate = 1%. What does

Suppose the Treasury interest rates are as follows: 1-year rate = 3%, 5-year rate = 2.5%, 10-year rate= 2%, 30-yer rate = 1%.

What does the information tell us about expected future short term interest rates and the expected state of the economy?

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