Question: 25 . An increase in expected inflation for any given nominal interest rate will cause: Multiple Choice the real return to bondholders to decrease. a

25 .

An increase in expected inflation for any given nominal interest rate will cause:

Multiple Choice

  • the real return to bondholders to decrease.
  • a movement down the bond demand curve, but no change in the bond demand curve.
  • the bond demand curve to shift right.
  • the price of bonds to increase.

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