Inflation has increased to new highs in recent years. How does expectation of higher inflation in the coming years affect interest rates? O A. Demand for bonds declines while supply of bonds rises resulting in higher nominal interest rates in the market OB Demand for bonds rises in the expectation of higher nominal interest rates leading to a rise in the interest rate. OC. Higher expectation of inflation will lower demand for money causing interest rates to decline in the future OD. Demand for bonds increases while supply of bonds declines leading to a higher nominal interest rate