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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