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
A
You might also like to view...
Unemployment and recessions are sometimes necessary to curb high inflation
Indicate whether the statement is true or false
When the economy is at full employment the unemployment rate equals the natural unemployment rate
Indicate whether the statement is true or false
All of the following are reasons for caution when considering investing in emerging markets EXCEPT:
A) in rapidly growing economies, expectations of future growth are already reflected in stock prices. B) economies experiencing rapid growth typically experience a dilution effect. C) fees for investing in funds that specialize in emerging markets tend to be higher than other funds. D) most economists expect the economies of emerging markets to grow more slowly than that of more advanced economies.
In an open economy, the law of one price implies that
A) the domestic economy may have a comparative advantage in only half the goods it produces. B) perfect competition holds in all domestic markets. C) purchasing power parity should hold. D) the nominal exchange rate should equal one.