A Rise in the Expected Inflation Rate Leads to ________

question 104

Multiple Choice

A rise in the expected inflation rate leads to ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.

• A) an upward shift; no shift
• B) a leftward shift; an upward shift
• C) no shift; no shift
• D) no shift; an upward shift

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Definitions:

Quarterly Withdrawals

Withdrawals from an account or fund that occur four times each year, typically every three months.

Education Fund

A savings or investment account set aside for the purpose of funding educational expenses.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest of previous periods of a deposit or loan on a twice-a-year basis.

Monthly Payments

Payments required to be made every month, often in the context of loan repayments, utility bills, or subscription services.