A reduction in expected inflation will result in all of the following EXCEPT:
A)lower nominal interest rates
B)lower real interest rates
C)reduced demand for bonds
D)increased supply of bonds

Question

Quizplus · Accepted Answer

A reduction in expected inflation will result in lower nominal interest rates, lower real interest rates, and increased demand for bonds. However, it will not result in an increased supply of bonds.

A Reduction in Expected Inflation Will Result in All of the Following