54. With reference to question #53, assume inflationary expectations rise by 1%. As a result, interest rates rise by 1%, but, suppose now that our forecast of nominal dividend growth also rises by 1% to 4.50%. In this scenario, the "market" PE Ratio should be expected to:

a. Increase.

b. Decrease.

c. Remain unchanged.

d. all of the above.

e. none of the above.