In the Long Run, How Does an Increase in the Rate

question 49

Multiple Choice

In the long run, how does an increase in the rate of growth of the money supply shift the Phillips curves?

• A) It shifts both the short-run and long-run Phillips curves to the right.
• B) It shifts the long-run Phillips curve right and the short-run Phillips curve left.
• C) It shifts only the short-run Phillips curve to the right.
• D) It shifts only the short-run Phillips curve to the left.

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Definitions:

Present Value Tables

A set of tables used to calculate the present value of an amount of money to be received in the future by taking into account a specific interest rate.