The Phillips Curve Shows the Relationship Between

question 20

Multiple Choice

The Phillips curve shows the relationship between:

• A) the unemployment rate and the level of real income.
• B) the in?ation rate and the level of aggregate demand.
• C) the rate of change in the price level and the unemployment rate.
• D) the wage rate and the level of unemployment.

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Definitions:

Coupon Rate

The coupon rate is the annual interest rate paid by bond issuers on the bond's face value.

Clean Price

The price of a bond net of accrued interest; this is the price that is typically quoted.

Coupon Bond

A type of bond that pays the holder periodic interest payments based on a predetermined rate (the "coupon rate") until it matures, at which point the principal (or face value) is repaid.

Yield To Maturity

The total expected return on a bond if held to its maturity date, including both interest payments and any gain or loss if the bond was purchased at a discount or premium.