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The variable f 1,1 as used in the expectations theory is interpreted as the forward rate for one year: commencing in one year. based on

The variable f 1,1 as used in the expectations theory is interpreted as the forward rate for one year:

commencing in one year.

based on a 1 percent increase from the current rate.

at 1 percent.

based on the prior one-year rate.

based on a 1 percent probability of occurrence.

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