When the Expected Inflation Rate Increases,the Real Cost of Borrowing

question 45

Multiple Choice

When the expected inflation rate increases,the real cost of borrowing ________ and bond supply ________,everything else held constant.

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

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Definitions:

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a popular American musical by Lin-Manuel Miranda, telling the story of American Founding Father Alexander Hamilton.

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