A Reverse Phillips Curve Would Consist of a

question 19

Multiple Choice

A reverse Phillips Curve would consist of a

• A) positive relationship between deviations from trend in real and nominal interest rates.
• B) negative relationship between deviations from trend in real and nominal interest rates.
• C) positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity.
• D) negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity.
• E) relationship between lagging and leading indicators.

---

Definitions:

Net Asset Test

A financial assessment to determine a company's or individual's net worth by subtracting total liabilities from total assets.

Revised Act

Refers to legislation that has been updated or amended to incorporate changes or new provisions since its original enactment.

Earned Surplus

Profits that a company has retained rather than distributed to shareholders, typically used for reinvestment in the business or to pay down debt.

Undistributed Profits

Profits earned by a company that have not been paid out as dividends to shareholders and are retained for reinvestment.