Exhibit 17-4 Short-Run and Long-Run Phillips Curves Suppose the Economy

question 17

Multiple Choice

Exhibit 17-4 Short-run and long-run Phillips curves Suppose the economy in Exhibit 17-4 is at point E₁, and the Fed increases the money supply. If people have rational expectations, then the economy will move:

• A)to point A in the short run and point B in the long run.
• B)directly to point B.
• C)to point C in the short run and point D in the long run.
• D)directly to point D.

Understand the significance of legal measures, like the Economic Espionage Act and Foreign Corrupt Practices Act, in curbing unethical practices in international marketing.

Grasp how corporate culture manifests through employee behavior, ethical expectations, and social responsibility.

Recognize the importance of transparency and the role of organizations like Transparency International in promoting ethical business practices.

Understand different personal moral philosophies, such as utilitarianism and moral idealism, and their impact on ethical decision-making.

---

Definitions:

Initial Cost

The upfront expenditure involved in acquiring an asset or starting a project.

Hong Kong Dollars

The legal currency of Hong Kong, used in financial transactions within the region.

U.S. Dollars

The official currency of the United States, widely used as a benchmark in global financial transactions.

Uncovered Interest Rate Parity

A theory suggesting that the difference in interest rates between two countries is equal to the expected change in exchange rates between those countries' currencies.