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    Exam 4: Why Do Interest Rates Change?
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    A Decrease in the Expected Rate of Inflation Causes the Demand
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A Decrease in the Expected Rate of Inflation Causes the Demand

Question 56

Question 56

Multiple Choice

A decrease in the expected rate of inflation causes the demand for bonds to ________ and the supply of bonds to ________.


A) fall; fall
B) fall; rise
C) rise; fall
D) rise; rise

Correct Answer:

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