An Increase in the Expected Rate of Inflation Will ________

question 97

Multiple Choice

An increase in the expected rate of inflation will ________ the expected return on bonds relative to the that on ________ assets,everything else held constant.

• A)reduce;financial
• B)reduce;real
• C)raise;financial
• D)raise;real

---

Definitions:

Psychotropic Drug

A chemical substance that changes brain function and results in alterations in perception, mood, or consciousness.

Psychological Symptoms

Manifestations of mental or emotional distress, which may include anxiety, depression, mood swings, or behavioral changes.

Psychosis

Loss of contact with reality, most often evidenced as delusions or hallucinations.

Mania

A state characterized by racing thoughts, pressured speech, irritability or euphoria, and impaired judgment.