If People in a Country That Has Had Persistently High

question 236

Multiple Choice

If people in a country that has had persistently high inflation expect it to remain high and are skeptical of promises the central bank makes, then the Phillips curve is

• A) farther to the left than otherwise. If the central bank tries to reduce inflation unemployment will rise by more than if people had believed its promises.
• B) farther to the left than otherwise. If the central bank tries to reduce inflation unemployment will rise by less than if people had believed its promises.
• C) farther to the right than otherwise. If the central bank tries to reduce inflation unemployment will rise by more than if people had believed its promises
• D) farther to the right than otherwise. If the central bank tries to reduce inflation unemployment will rise by less than if people had believed its promises..

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Noncash Financing

Financing activities that do not involve cash flows, such as issuing stock for assets or converting debt to equity.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and investments not related to the entity's primary business operations.

Financing Activities

Transactions and events where cash is raised or paid back to finance the company's operations, including issuing debt, equity, and paying dividends.

Operating Activities

Transactions and other events that are not investing or financing activities which affect the net income of a company.