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

question 79

Multiple Choice

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

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

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Definitions:

Creditor

An individual or entity that is owed a debt or other obligation by another individual or entity, known as the debtor.

1994 Amendments

Refers to specific changes or updates made to legislation or regulatory frameworks in the year 1994.

U.S. Judicial Conference

The U.S. Judicial Conference is the policymaking body for the federal court system, tasked with ensuring the efficient administration of justice within the federal judiciary.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.