Answer:
The correct answer is: unemployment and inflation are negatively related. In the long run they are largely unrelated problems.
Explanation:
According to the Philips curve, in the short run, inflation and unemployment rate are inversely related. This implies that when inflation decreases, the unemployment rate increases.
This is indicated by the downward-sloping Phillips curve. When the government adopts a contractionary policy to reduce inflation, unemployment will increase.
In the long run, the Phillips Curve will be a vertical line at the natural rate of unemployment. The inflation rate is not related to the unemployment rate in the long run.
Answer:
b
Explanation:
by definition, disseminate means to distribute or broadcast information
Answer:
Easy money is a representation of how the Fed can stimulate the economy using monetary policy. The Fed looks to create easy money when it wants to lower unemployment and boost economic growth, but a major side effect of doing so is inflation.
Explanation:
Answer:
The rate of return is 7.20%
Explanation:
a) Assuming you purchased the bond for $880, in order to calculate the rate of return you earn if you held the bond for 25 years until it matured with a value $5,000 we would have to calculate the following formula:
Rate of Return = [FV/PV]1/n - 1
Rate of Return= [$5,000 / $880]1/25 - 1 = [5.6818]0.04 - 1 = 1.0720 - 1 = 0.0720, or 7.20%
Rate of Return= [5.6818]0.04 - 1
Rate of Return= 1.0720 - 1
Rate of Return=0.0720, or 7.20%
The rate of return is 7.20%
