The short-run Phillips curve is downward sloping but the long-run is a vertical line
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following best defines what money is now and what it has been in the past?
A) currency plus credit cards B) anything accepted as a means of payment C) currency D) anything used as a store of value E) currency plus checking deposits
When is demand perfectly elastic? When is demand perfectly inelastic? What are the values of the price elasticity of demand when demand is perfectly elastic or perfectly inelastic? What do perfectly elastic and perfectly inelastic demand curves look
like?
Refer to the graph below, which shows a change in the demand for pounds from D to D'. Under a system of fixed exchange rates, the:
A. Price of a pound will increase to $3
B. Price of a dollar will increase to 3 pounds
C. Shortage equal to ab would be met using international monetary reserves
D. Payment deficit will cause changes in price and income levels, which reestablishes the original exchange rate
In the context of terrorism, an example of self-protection would be
A. the airline industry increasing security. B. an insurance company buying reinsurance from the government. C. the airline industry buying terrorism insurance. D. an insurance company buying reinsurance from another insurance company.