If im an investor and start thinking that the future inflation rate is going rise within the next year, what theory am I using?

A. Expectations Theory

B. Inflation Theory

C. Market Segmentation Theory

D. Liquidity Preference Theory

dough e is creating an electronic candle that will release a fragrance when odor is detected and has gotten some very positive feedback on the design. The batteries that Billy needs for this candle design are very expensive and he doesnt have the capital to purchase them. Sally offers to loan Billy $50,000 but she wants the loan paid back monthly for two years with a 15% interest rate. She has agreed that if Billy makes each payment in full and on time for the first 6 months she will lower the interest rate to 10% for the remaining 18 months. What factor is Sally considering when investing in Billy's candle design?

A. Production Opportunity

B. Inflation

C. Risk

D. Time Preference for Consumption

please answer each and explain why in full sentences .