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An increase in expected inflation will
A) increase the nominal interest rate on both short-term and long-term bonds.
B) decrease the nominal interest rate on both short-term and long-term bonds.
C) increase the nominal interest rate on short-term bonds but not affect the nominal interest rate on long-term bonds.
D) increase the nominal interest rate on long-term bonds but not affect the nominal interest rate on short-term bonds.
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Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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