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When the Inflation Rate Is Expected to Increase,the Expected Return

Question 59

Multiple Choice

When the inflation rate is expected to increase,the expected return on bonds relative to real assets falls for any given interest rate; as a result,the ________ bonds falls and the ________ curve shifts to the left.


A) demand for; demand
B) demand for; supply
C) supply of; demand
D) supply of; supply

Correct Answer:

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