Question: 14 . When expected inflation decreases for any given nominal interest rate, all of the following occur except the: Multiple Choice real interest rate decreases.

14 . When expected inflation decreases for any given nominal interest rate, all of the following occur except the:

Multiple Choice

  • real interest rate decreases.
  • bond supply curve shifts to the left.
  • cost of borrowing increases and the desire to borrow decreases.
  • price of bonds increases.

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