An Increase in the Expected Rate of Inflation Causes the Demand

question 74

Multiple Choice

An increase in the expected rate of inflation causes the demand for bonds to ________ and the supply for bonds to ________.

• A) fall; fall
• B) fall; rise
• C) rise; fall
• D) rise; rise

---

Definitions:

Drug Therapy

The use of psychotropic drugs to reduce the symptoms of psychological disorders.

Brain Stimulation

Interventions that directly or indirectly stimulate the brain in order to bring about psychological improvement.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to relieve severe mental disorders.

ECT

Electroconvulsive Therapy, a medical treatment most commonly used for severe depression which involves inducing seizures in anesthetized patients through electrical currents.