An increase in inflationary expectations for the next few years would, all else the same:

Name: An increase in inflationary expectations for the next few years would, all else the same:
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Question

Quizplus · Accepted Answer

An increase in inflationary expectations causes investors to demand higher yields on long-term bonds, which lowers their prices and increases their yields. Therefore, option E is the correct answer. The other options are not directly affected by inflationary expectations or would have the opposite effect.

An Increase in Inflationary Expectations for the Next Few Years