When tax code changes reduce investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment

Normally, a firm's borrowing cost is the expected real interest rate, which takes expected inflation into account. With price stickiness, however, the firm will consider only:

a. expected inflation. b. expected wages. c. the nominal rate of interest. d. the expected appreciation of the asset.

Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future

a. True b. False Indicate whether the statement is true or false