2020 Related to the Solved Problem 4.3) According to an article in the Wall Street Joumalin early 2016. "U.S. government bonds maturing in more than 25 years returned a negative 1.2% in the month through Thursday...after chalking up a 8.7% gain between January and March.... The reversal reflects a shift in financial markets preoccupation from the prospect of a recession to the risk of higher inflation." shift: Source: Min Zong, "I Didn't Pay to Bet Against Inflation in April," Wall Street Journal, April 29, 2016 An increase in expected inflation will shift the demand curve and the supply curve resulting in a new equilibrium with a price An increase in expected inflation will the nominal interest rate on both short-term and long-term bonds. The longer the maturity of a bond, the the change in price as a result of a change in market interest rates. As a result, capital losses on long-term bonds will be than capital losses on short-term bonds reant that Fear Treasur because eve Click to select your answers) small positiv inflation is actually becomes negative