The Long- Run Phillips Curve

question 359

Multiple Choice

The long- run Phillips curve

• A) is vertical.
• B) slopes downward.
• C) slopes upward.
• D) is horizontal.

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Definitions:

100 Percent Reserve

A banking system where banks hold reserves equal to 100% of their deposit liabilities, meaning all deposits can be fully backed by liquid assets, reducing the risk of bank runs.

Fractional Reserve System

A banking system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal.

Quartz

A hard, crystalline mineral composed of silicon dioxide, widely used in jewelry and as an industrial abrasive.

Medium Of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.