Which of the following correctly describes the Phillips curve?
a. A curve showing the inverse relationship between interest rates and the quantity of money demanded.
b. A curve showing the direct relationship between interest rates and the quantity of money demanded.
c. A curve showing the direct relationship between the inflation rate and the unemployment rate.
d. A curve showing the inverse relationship between the inflation rate and the unemployment rate.
d. A curve showing the inverse relationship between the inflation rate and the unemployment rate.
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The Fed's quantitative easing is to purchase ________ to affect credit spreads
A) long-term securities B) short-term securities C) both long-term and short-term securities D) private assets
In a monopolistically competitive industry, the competitive element results from ____ and the monopoly element results from ____. a. product differentiation; substantial barriers to entry
b. a large number of firms and free entry; product differentiation. c. advertising; product differentiation. d. product differentiation; the small number of large producers.