If global prices are lower than domestic prices, the short-run Phillips curve is likely to be horizontal.
Answer the following statement true (T) or false (F)
True
Globalization caps the rise in domestic prices so that the unemployment rate can fall without causing inflation. This means the short-run Phillips curve is horizontal.
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Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom? i. A democratic form of government ii. Property rights must be protected. iii
The government must support and pay for inventions and innovations. A) i only B) ii only C) Both i and ii D) Both ii and iii E) Both i and iii
The federal funds rate is
A. The required reserve ratio that the federal reserve requires banks to maintain B. The interest rate that banks charge for loans to its important commercial borrowers C. The interest rate that banks charge each other for overnight loans