The Rate of Inflation Tends to Remain Constant When

question 11

Multiple Choice

The rate of inflation tends to remain constant when

• A)the unemployment rate is above the NAIRU.
• B)the unemployment rate equals the NAIRU.
• C)the unemployment rate is below the NAIRU.
• D)the unemployment rate increases faster than the NAIRU increases.

---

Definitions:

Shelf Prospectus

A regulatory document filed by a company that allows it to issue shares to the public without having to re-file with the securities commission for each offering.

Syndicated Offering

A financial transaction in which multiple lenders or underwriters jointly provide funds or purchase a security issuance.

Individual Investors

Private investors who buy and sell securities for their personal account, not on behalf of an organization.

Selling Groups

A consortium of financial institutions or broker-dealers who work together to sell a large issuance of securities, such as bonds or stocks, to the public.