If Inflationary Expectations Fall

question 17

Multiple Choice

If inflationary expectations fall

• A) there is a movement down along the Phillips curve.
• B) the Phillips curve shifts outward.
• C) the Phillips curve shifts inward.
• D) there is a movement up along the Phillips curve.

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Definitions:

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company’s profitability.

Cash Dividends

Cash distributions to shareholders from a company's earnings.

Preferred Stock

A class of ownership in a corporation with a priority claim on assets and earnings before common stock; typically does not have voting rights but has a fixed dividend.

Capital Stock

The total amount of stock, both common and preferred, that a company is authorized to issue according to its corporate charter.