There are two types of government expenditures

In a world lacking property rights, it would be ________ to realize the gains from trade and there would be ________ specialization

A) easier; less B) easier; more C) harder; less D) harder; more

According to the expectations theory, what will be the interest rate on a three-year bond if a one-year bond has an interest rate of 2% and is expected to have an interest rate of 3% next year and 5% in two year?

Report your answer using a percentage with two decimal places.