A Decrease in the Expected Rate of Inflation Will ________

question 44

Multiple Choice

A decrease in the expected rate of inflation will ________ the expected return on bonds relative to that on ________ assets.

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

---

Definitions:

Malaria

A serious and sometimes life-threatening disease caused by parasites transmitted to humans through the bites of infected mosquitoes.

Cancer

A disease characterized by the uncontrolled division of abnormal cells in a part of the body.

Strokes

Medical conditions that occur when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from getting oxygen and nutrients, causing cells to die.

Type A Personality

A personality trait characterized by high levels of competitiveness, self-driven ambition, impatience, and a constant sense of urgency.