As a Result of Higher Expected Inflation

question 46

Multiple Choice

As a result of higher expected inflation

• A) the demand and supply curves for bonds both shift to the right and the equilibrium interest rate usually rises.
• B) the demand and supply curves for bonds both shift to the left and the equilibrium interest rate usually falls.
• C) the demand curve for bonds shifts to the right, the supply curve for bonds shifts to the left, and the equilibrium interest rate usually rises.
• D) the demand curve for bonds shifts to the left, the supply curve for bonds shifts to the right, and the equilibrium interest rate usually rises.

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Definitions:

Terman

Lewis M. Terman, an American psychologist who is best known for his revision of the Stanford-Binet Intelligence Scales and studies on gifted children.

Mental Age

The level of mental ability or intelligence of an individual as compared to the average mental capability for their actual age.

Chronological Age

A person's age measured in years from their date of birth.

Multiplied

Increased or expanded in quantity or number through the process of multiplication.