When the Inflation Rate Is Expected to Increase,the Expected Return

question 59

Multiple Choice

When the inflation rate is expected to increase,the expected return on bonds relative to real assets falls for any given interest rate; as a result,the ________ bonds falls and the ________ curve shifts to the left.

• A) demand for; demand
• B) demand for; supply
• C) supply of; demand
• D) supply of; supply

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Definitions:

McClelland's Acquired Needs Theory

A psychological theory that suggests human needs are acquired over time and shaped by life experiences, emphasizing needs for achievement, affiliation, and power.

Achievement

The accomplishment of a goal or objective, typically requiring effort, skill, or courage.

Power

The ability to get others to do something you want done or to make things happen the way you want.

Affiliation

is a social or professional connection between individuals or organizations, often based on shared goals, interests, or values.