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Author Question: Explain what occurs in the capital market. What will be an ideal ... (Read 55 times)

Mr.Thesaxman

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on: Jun 29, 2018
Explain what occurs in the capital market.
 
  What will be an ideal response?

Question 2

Ceteris paribus, an increase in the current or actual rate of inflation will cause
 
  A) the unemployment rate to decrease (a movement along the short-run Phillips curve).
  B) the long-run Phillips curve to shift leftward.
  C) expectations of future inflation rates to be revised downward.
  D) the short-run Phillips curve to shift upward.


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Qarqy

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The capital market is where households supply their savings to firms that demand funds in order to buy capital goods.

Answer to Question 2

A


Mr.Thesaxman

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

ryhom

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Reply 3 on: Yesterday
Excellent

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