QUESTION 18 the expected path of one-year interest raten over the next five years a 10 percent 4 percent, 1 percent. A percent, and 7 percent, then the pure expectations theory predict that the bond with the lowest interest rate today is the one with a maturity of four years two yoon Othvee years one year five years QUESTION 19 Everything else hold constant in the market for reserves, when the federal funds ratel 4% raising the discount rate from 4% to 5% Oncreases the borrowed reserves O moroes the nonborrowed reserves o decreases the borrowed reserves decreases the ronborrowed reserves Onone of the above