An Increase in the Rate of Expected Inflation Will

Multiple Choice

An increase in the rate of expected inflation will

A) shift the demand for loanable funds to the left (down) .
B) shift the supply of loanable funds to the left (down) .
C) shift demand and supply for loanable funds to the right (up) decreasing interest rates.
D) shifts demand and supply for loanable funds to the right (up) increasing interest rates.