问题如下：
If the inflation is higher than expected and everything else hold constant, what will happen on the value of the real tax savings from depreciation and the real after-tax interest expense, respectively?
选项：
A.Both would decrease.
B.Both would increase.
C.One would increase and the other would decrease.
解释：
A is correct.
考点：More on Cash Flow Projections
解析：如果通货膨胀高于预期，real tax会上升，real tax saving会下降。
债券的利费用是固定的，当通货膨胀高于预期，实际购买力下降，那么发行人实际支付出去的利息费用则会下降。
老师好 李老师上课说 inflation 上去是不好的，所以好的东西下降， 坏的东西上升。 是不是这里interest expense 可以抵税，有税盾作用 所以是好事 所以inflation increases 的时候，after tax interest expense is decreased? 谢谢。
