If the level of inflation is expected to decrease, there will be upward pressure on interest rates and on the required rate of return on bonds.

Name: If the level of inflation is expected to decrease, there will be upward pressure on interest rates and on the required rate of return on bonds.
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When inflation is expected to decrease, interest rates typically fall, which means there is downward pressure on the required rate of return on bonds, making their prices rise.

If the Level of Inflation Is Expected to Decrease, There