An Increase in the Expected Inflation Rate Causes the Supply

question 151

Multiple Choice

An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________,everything else held constant.

• A)increase;left
• B)increase;right
• C)decrease;left
• D)decrease;right

---

Definitions:

Realistic Thinking

Focusing on facts and evidences to form beliefs or understand the world, acknowledging the actual state of affairs.

Optimistic Thinking

A mindset characterized by expecting the best possible outcome in any situation and focusing on the most hopeful aspects.

Panic Button Effect

A situation or response mechanism designed to offer an immediate means of help or action in emergency situations.

Automatic Thoughts

Refers to the spontaneous, quick thoughts that occur in response to a situation, often without being consciously aware of them, influencing emotions and behaviors.