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    Exam 19: Quantity Theory, inflation and the Demand for Money
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    If People Expect Nominal Interest Rates to Be Higher in the Future,the
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If People Expect Nominal Interest Rates to Be Higher in the Future,the

Question 79

Question 79

Multiple Choice

If people expect nominal interest rates to be higher in the future,the expected return to bonds ________,and the demand for money ________.


A) rises;increases
B) rises;decreases
C) falls;increases
D) falls;decreases

Correct Answer:

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