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give correct option of Q37 in 5 mins I will give you thumb up Accorting to the Fisher Effect. if people expect the inflation rate
give correct option of Q37 in 5 mins I will give you thumb up
Accorting to the Fisher Effect. if people expect the inflation rate to go down by 2 percent, a. Dernand for bonds will increase and supply of boncss wil decrese leadine 10 a higher nominal interest rate. h. Dermand for bonds will increase and supply of bonds will decrease leading to a higher ex-ante real interest rate E. Dechand for bonds will increase and supply of honds wal decrease leaving the ex-ante real interect rate unchuged. t4. Derrand far bonde will increate and supply of bonds will decreane lesding to a lower ex-ante real linterest rate c. Demand for honds will decrease and supply af bonds will increase feaving the exiante real interest mate unchamedStep by Step Solution
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