If People Expect Nominal Interest Rates to Be Lower in the Future,the

question 59

Multiple Choice

If people expect nominal interest rates to be lower in the future,the expected return to bonds ________,and the demand for money ________.

• A)increases;increases
• B)increases;decreases
• C)decreases;increases
• D)decreases;decreases

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Definitions:

Credentialed Public Accountant

A licensed accounting professional who has met certain education and experience requirements and passed a qualifying exam.

Professional Accountant

An individual who is certified to practice accounting and is held to a set of standards by a regulatory body.