An analyst is evaluating securities in a developing nation where the inflation rate is very high. as a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. a 6-year security with no maturity, default, or liquidity risk has a yield of 20.84%. if the real risk-free rate is 6%, what average rate of inflation is expected in this country over the next 6 years?

Economic analysis indicates that it will be politically more attractive to a. enact expansionary fiscal policy during a recession than to enact restrictive fiscal policy during an economic expansion. b. enact expansionary fiscal policy during an economic expansion than to enact restrictive fiscal policy during a recession. c. enact restrictive fiscal policy during an economic expansion than to enact expansionary fiscal policy during a recession. d. raise taxes than to increase spending.