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?

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.