As a Result of Higher Expected Inflation

Multiple Choice

As a result of higher expected inflation

A) the demand and supply curves for bonds both shift to the right and the equilibrium interest rate usually rises.
B) the demand and supply curves for bonds both shift to the left and the equilibrium interest rate usually falls.
C) the demand curve for bonds shifts to the right, the supply curve for bonds shifts to the left, and the equilibrium interest rate usually rises.
D) the demand curve for bonds shifts to the left, the supply curve for bonds shifts to the right, and the equilibrium interest rate usually rises.