A Consol Is

question 61

Multiple Choice

A consol is

• A)a special type of bond that matures in 100 years.
• B)a perpetual bond with no maturity date.
• C)a bond whose price is directly related to changes in the interest rate.
• D)a sum resulting from compounding. as opposed to discounting.

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Definitions:

Short-Run Phillips

A theoretical framework that implies a short-term inverse correlation between inflation rates and unemployment levels.

Classical Dichotomy

The theoretical separation of nominal and real variables in an economy, suggesting that changes in the money supply only affect nominal variables and not real variables like output.

Fiscal Policy

Modifications by the government in its expenditure and tax policies to impact the country's economic conditions.

Short-Run Phillips

A concept describing the inverse relationship between unemployment and inflation in the short run.