The Short-Run Phillips Curve Holds _____ Constant

question 191

Multiple Choice

The short-run Phillips curve holds _____ constant.

• A) wages
• B) taxes
• C) income
• D) inflationary expectations

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Definitions:

Excess Reserves

Funds that banks hold over and above the required minimum reserves specified by central banking authorities, which can be loaned out or invested.

Reserve Requirements

The minimum amount of reserves that banks must hold against deposits, set by central banks to ensure liquidity and control the money supply.

Discount Rate

The discount rate is the interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, frequently used as a benchmark in lending rates.