An increase in the expected rate of inflation suggests that investors should sell the stocks of natural resource companies (e.g., gold and silver).

Name: An increase in the expected rate of inflation suggests that investors should sell the stocks of natural resource companies (e.g., gold and silver).
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An increase in the expected rate of inflation often leads investors to buy stocks of natural resource companies, such as gold and silver, as these are considered hedges against inflation.

An Increase in the Expected Rate of Inflation Suggests That