Samuelson and Solow Believed That the Phillips Curve

question 14

Multiple Choice

Samuelson and Solow believed that the Phillips curve:

• A)would shift to the right if the central bank used expansionary monetary policy to reduce unemployment
• B)implied that low unemployment was associated with low inflation
• C)offered policymakers a menu of possible economic outcomes from which to choose
• D)all of the above
• E)none of the above

---

Definitions:

Interest Rates

The cost of borrowing money, often expressed as a percentage of the amount borrowed, which can influence consumer spending and economic growth.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without deteriorating in value.

Medium of Exchange

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

Small Denomination CDs

Certificates of Deposit that are issued in relatively small amounts, making them accessible to individual investors.