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Assume you are convinced of the validity of the pure expectations theory of term structre.

Assume you are convinced of the validity of the pure expectations theory of term structre.
Suppose you observe that yields on 1-year,2-year, and 5-year treasury securities currently are 4 percent , 6 percent and 8 percent , respectivly.
What are the likly implications for economic activity in the nation in the next few years? EXPLAIN

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