When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held constant

Potential buyers of older homes form their bids from imperfect estimates of a house's value As a consequence,

a. Lower quality houses are more likely to be up for sale b. Higher quality houses are more likely to be up for sale c. Both the higher and lower value houses would be offered for sale d. No houses would be offered for sale

Absolute advantage is based on opportunity cost

a. True b. False