If a Central Bank Announced That It Was Going to Decrease

question 68

Multiple Choice

If a central bank announced that it was going to decrease inflation by 5%,people revised their inflation expectations downward by 4%,and the central bank only lowered inflation by 1%,the short run Phillips curve would shift

• A)right and unemployment would rise.
• B)right and unemployment would fall.
• C)left and unemployment would rise.
• D)left and unemployment would fall.

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Definitions:

Fiduciary Duty

Someone who is required to act for the benefit of another person on all matters within the scope of their relationship; one who owes to another the duties of good faith, loyalty, due care, and disclosure.

Personal Representative

An individual appointed to administer the estate of a deceased person, managing and distributing the person's assets per their will or law.

Treasury Bills

Short-term government securities issued at a discount from the face value and redeemed at maturity for the full face value.

Escheats

The process by which unclaimed or abandoned property reverts back to the state.