If there is a stable downward-sloping Phillips curve, it follows that an economy can choose the combination of
A) high unemployment and low inflation.
B) low unemployment and high inflation.
C) moderate unemployment and moderate inflation.
D) low inflation and low unemployment.
E) a, b, and c
E
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If you initially pay $1,000 for a bond with an annual interest rate of 5 percent, but then the market interest rate falls to 4 percent
A) the market price of the bond is still $1,000. B) the bond's annual interest payment remains equal to $50. C) the market price of the bond has increased. D) the market price of the bond has decreased.
Legal foundations of the European model are provided by common law
a. True b. False
Just after the terrorist attack on September 11, 2001, the Fed stood ready to lend financial institutions funds. When the Fed did this, it was acting in its role of lender of last resort
a. True b. False Indicate whether the statement is true or false
When a person's expressed valuation of a product is affected by the numbers in their head, this is an important implication of:
A. mental accounting. B. the decoy effect. C. bundling. D. the anchoring effect.