Is it possible for the rate of inflation to exceed the rate of money supply growth?If the rise in inflation is fully anticipated, use appropriate diagrams and/or equations to assess the overall impact on the real rate of interest.

What would this rise in expected inflation likely imply for the interest rate differential between Treasuries and foreign government bonds?

What additional assumption(s) would you have to make in order to be sure of the overall effect?

Finally, could Federal Reserve attempts to keep interest rates low be boosting inflation expectations today?Why or why not?