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Suppose that interest rates fall on the long end of the Treasury curve, while remaining relatively unchanged along the TIPS curve. This would represent a(n)

Suppose that interest rates fall on the long end of the Treasury curve, while remaining relatively unchanged along the TIPS curve. This would represent a(n)

  • A. upward revision in long-term inflation expectations

  • B. downward revision in long-term inflation expectations

  • C. downward revision in future short-term real interest rates

  • D. a and c

  • E. b and c

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