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When Expected Inflation Increases,investors ________ Their Demand for Bonds Because,for

Question 92

Multiple Choice

When expected inflation increases,investors ________ their demand for bonds because,for each nominal interest rate,the higher the inflation rate,the ________ the real interest rate investors will receive.


A) increase; higher
B) increase; lower
C) reduce; higher
D) reduce; lower

Correct Answer:

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