The short run Phillips Curve shows there is ________ relationship between the unemployment rate and the rate of inflation.

What is the main rationale economists provide for assigning government the responsibility of protecting people against foreign aggressors?

A) It would be too dangerous to allow citizens to keep and bear arms for the purpose of forming militias to defend their communities. B) Most people are patriotic only when the government is involved. C) "National defense" must by necessity be nationalized. D) People will not risk their lives unless government requires them to do so. E) Private providers could not exclude non-payers from the benefits.

The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________

A) inflation is expected to rise B) inflation is expected to decrease C) the real cost of borrowing has increased D) the real cost of borrowing has decreased E) none of the above