(A) A decrease in the inflation rate; (B) of lower interest rates

(A) A decrease in the target inflation rate; (B) the real exchange rate appreciates

(A) An increase in the target inflation rate; (B) the real exchange rate depreciates

(A) an increase in the inflation rate; (B) of lower interest rates

(A) changes the Taylor rule; (B) actual inflation

(A) changes the Taylor rule; (B) underlying inflation

(A) lowers output ; (B) actual inflation

(A) lowers output; (B) underlying inflation

all opportunities for easy arbitrage profit have been exhausted

.short-run interest rates will be lower than long-run interest rates, holding the risk quality of assets constant

the existence of speculative asset price bubbles when interest rates approach zero

the nominal rate of interest is positive

Market makers require a bid-ask spread to offer their services at al

That maturity premiums increase with the term of a bond

A bond price represents the present discounted value of the payments agreed upon at the time when the bond was issued.

Capital markets are not efficient for long-maturity loans.

the asset price corresponds to its fundamental value

it levels off at a high Fisher asset price plateau

as long as traders believe that the bubble will continue to grow, validate market expectations, and offer the ’normal’ return

.prices rise