If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate

Expansionary monetary policy is designed to stimulate the economy by increasing the money supply, but not create much inflationary pressure

Indicate whether the statement is true or false

According to the life-cycle hypothesis ________

A) households consume on the basis of their current income and liabilities B) household consumption as a percentage of income varies over one's lifetime C) current income is a function of future income D) cycling to work everyday allows one to live a longer life