If policymakers are expected to increase the money supply, then Monetarists argue that bond demand and thus prices will __________. When it occurs, the actual increase in the money supply will have no further effect on bond prices and thus the anticipated higher inflation rate will cause interest rates to __________.

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The Answer of If policymakers are expected to increase the money supply, then Monetarists argue that bond demand and thus prices will __________. When it occurs, the actual increase in the money supply will have no further effect on bond prices and thus the anticipated higher inflation rate will cause interest rates to __________.

If Policymakers Are Expected to Increase the Money Supply, Then