Explain what occurs in the capital market. What will be an ...

[Mr.Thesaxman]

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.

[Qarqy]

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]

Thanks for the timely response, appreciate it

[aliotak]

Gracias!