If the Level of Inflation Is Expected to Decrease, There

question 35

True/False

If the level of inflation is expected to decrease, there will be upward pressure on interest rates and on the required rate of return on bonds.

---

Definitions:

Just World

The belief that the world is fundamentally fair and that justice prevails, leading individuals to rationalize injustices or victimization.

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but the actions of others to inherent traits.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behaviors.

False Consensus Effect

The tendency to overestimate the extent to which others share our beliefs, attitudes, and behaviors.