The Costs of Disinflation Would Be Low If

question 36

Multiple Choice

The costs of disinflation would be low if

• A)expected inflation falls as inflation falls.
• B)wage and price controls were used.
• C)the Phillips curve were nearly horizontal.
• D)the Phillips curve adjusted slowly to changes in inflation.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to shareholders, usually in the form of cash.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a proportionate share in the company's profits through dividends or capital appreciation.

Bonds Payable

Long-term debt instruments issued by a company to investors, promising to pay back a specified sum of money at a future date along with periodic interest payments.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, usually in the form of cash.