An increase in expected inflation results in
A) lower nominal interest rates and higher bond prices.
B) lower real interest rates and higher bond prices.
C) higher real interest rates and lower bond prices.
D) higher nominal interest rates and lower bond prices.
D
Economics
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In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.
Economics
Which of the following will cause a reduction in output per worker (Y/N)?
A) a reduction in the capital stock (K) B) a reduction in the saving rate C) a reduction in K/N D) all of the above
Economics