David believes that we are moving into a period of deflation. If David’s expectations concerning deflation are correct, which of the following correctly pairs an investment vehicle with an appropriate logic?
Question 20 options:
Long-term, high-quality bonds: deflation will cause interest rates to decrease.
Savings and loan common stocks: deflation will cause savings and loans to lend at higher rates.
Precious metals: deflation will cause these assets to increase in value.
Short-term bonds: deflation will cause short-term interest rates to increase.