Options are more flexible than forward contracts.
a. true
b. false
a. true
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Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%. B) Workers and firms expect inflation to be 1%. C) The short-run Phillips curve will shift to the left. D) The short-run Phillips curve will shift to the right. E) The economy will move from C to A.
Explain why there is a direct relationship between price and quantity supplied
What will be an ideal response?
The primary tool the Fed uses to control the money supply today is: a. the discount rate
b. the required reserve ratio. c. the discount window. d. chartering. e. open market operations.
The PPF between goods X and Y will be a downward-sloping
A) straight line if increasing opportunity costs exist. B) straight line if decreasing opportunity costs exist. C) curve that is bowed inward if increasing opportunity costs exist. D) straight line if constant opportunity costs exist.