The Phillips Curve Shows

question 305

Multiple Choice

The Phillips curve shows

• A)the relationship between the rate of interest and planned investment.
• B)the relationship between the money supply and the price level.
• C)that an increase in government spending will decrease real national income.
• D)that an increase in inflation may be associated with a decrease in the rate of unemployment.

---

Definitions:

Rights Offering

A method by which a company raises capital by giving its existing shareholders the right to subscribe to new shares at a discount before they are offered to the public.

Market Price

The market rate at which assets or services can be presently exchanged.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including institutional investors and individual investors.

Net Present Value

A financial metric that calculates the present value of all cash inflows and outflows of a project or investment using a discount rate.