Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A)In the short run,unemployment and inflation are positively related.In the long run they are largely unrelated problems.
• B)Inflation and unemployment are positively related in the short run and in the long run.
• C)In the short run,unemployment and inflation are negatively related.In the long run they are largely unrelated problems.
• D)Inflation and unemployment are negatively related in the short run and in the long run.

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Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance every month.

Semi-annual Payments

Payments made twice a year, a common term in the context of loans, bonds, and some types of annuities.

Loan

Funds lent that must be repaid with an added interest charge.

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time, with the first payment made at the end of the period.