If Inflation Is Expected to Increase,this May Cause

question 73

Multiple Choice

If inflation is expected to increase,this may cause:

• A) interest rates to rise.
• B) the demand for loanable funds to fall.
• C) the supply of loanable funds to increase.
• D) interest rates to fall.

---

Definitions:

Autonomic Nervous System

The part of the nervous system responsible for controlling involuntary body functions, like heart rate, digestion, and breathing.

Somatic Nervous System

A part of the peripheral nervous system that controls voluntary movements of the body and transmits sensory information to the central nervous system.

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's 'fight or flight' response to stress.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and bringing the body to a restful state.