All else equal, will a decrease in the exp

问题单项选择题

All else equal, will a decrease in the expected rate of inflation result in a decrease in the:
Real risk-free of return Nominal risk-free rate of return（）
①A. Yes No
②B. Yes Yes
③C. No Yes

A. ①

B. ②

C. ③

答案

参考答案：C

解析：

The nominal risk-free rate of return includes both the risk-free rate of return and the expected rate of inflation. A decrease in inflation expectations would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.