If investors expect inflation to be higher:

A. the yields on bonds will fall because the higher inflation rate will reduce the real interest earned on the bonds and causing the yields to decrease.

B. the yields on bonds will rise because investors will need a higher rate of return on the bonds they are purchasing

C. the yields on bonds will fall because the price of bonds will fall due to the higher level of inflation.

D. the yields on bonds will rise because investors will demand more bonds at the current interest rates causing the price of bonds to increase