Question: d. How will an increase in inflation expectations affect the demand and/or supply for long-term bonds? Illustrate this effect in your graph and explain briefly

d. How will an increase in inflation expectations affect the demand and/or supply for long-term bonds? Illustrate this effect in your graph and explain briefly why you shifted the curve as you did.

e. What is the effect on long-term bond yields? (Will they go up or down?)

f. What effect would this have on the shape of the yield curve? Explain briefly. (one sentence)

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