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If the Fed unexpectedly increases the growth rate of the money supply how will the term structure be affected according to the expectations hypothesis? A.

If the Fed unexpectedly increases the growth rate of the money supply how will the term structure be affected according to the expectations hypothesis? A. short-term interest rates will decrease and long-term rates will increase B. short-term interest rates will increase relative to long-term rates C. short-term interest rates will decrease, but the effect on long-term rates will depend on long-term inflation expectations. D. short-term rates will increase, but the effect on long-term rates will depend on long-term inflation expectations.

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