In the above figure, suppose the economy is initially at point A. People come to expect the future U.S. exchange rate to be lower. As a result, there is a change from point A to a point such as ________

An increase in the expected inflation rate

A) leads to a movement downward along the short-run Phillips curve. B) shifts the short-run Phillips curve downward. C) shifts the long-run Phillips curve upward. D) shifts the short-run Phillips curve upward. E) leads to a movement upward along the short-run Phillips curve.

When an investor buys a corporate bond, the ________ is a loan to the corporation

A) principal of the bond B) bond's dividend payments C) interest on the bond D) coupon payment