1. With a change in interest rates

Question options:

	Long-term bond prices will change the same amount as short-term bonds
	Long-term bond prices will change more than short-term bonds if inflation is high. Long-term bond prices will change less than short-term bonds if inflation is low
	Long-term bond prices will change more than short-term bonds
	Long-term bond prices will change less than short-term bonds

2. When the Federal Reserve increases the money supply

Question options:

	the liquidity effect predicts higher inflation while the fisher effect predicts lower inflation
	the liquidity effect predicts lower inflation while the fisher effect predicts higher inflation
	both the liquidity effect and the fisher effect predict lower inflation
	both the liquidity effect and the fisher effect predict higher inflation