The essential feature of a ________ is that it immediately fixes the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date

An increase in expected inflation will

A) decrease the natural rate of unemployment. B) increase real wages. C) shift the long-run Phillips curve to the right. D) None of the above is correct.

Rational inattention refers to ________

A) the risk a firm runs when they do not pay attention to their customers B) firms making infrequent price decisions because of the time and effort those decision require C) the cost to the firm of losing sales from alienating customers D) all of the above E) none of the above