The Phillips Curve Based on the Unemployment and Inflation Rates

question 38

Multiple Choice

The Phillips curve based on the unemployment and inflation rates in the U.S.between 1961 and 1969 was:

• A)upward sloping.
• B)downward sloping.
• C)horizontal.
• D)vertical.
• E)upward sloping but kinked.

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Definitions:

Coupon Rate

The interest paid annually on a bond, indicated as a percentage of its face value.

Annually

Occurring once every year, often used to describe events or measurements that are taken or occur once per year.

Maturity

In finance, maturity is the time at which the principal amount of a bond, loan, or other debt instrument becomes due and payable.