Refer to Figure 28-4. Consider the shift in the short-run ...

[naturalchemist]

Refer to Figure 28-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
 
  A) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent.
  B) an increase in the expected rate of inflation from 4.0 to 5.5 percent.
  C) an increase in the natural rate of unemployment from 5.0 to 6.2 percent.
  D) None of the above is correct.

Question 2

When a foreign investor buys a bond issued in the United States
 
  A) the balance on the capital account increases. B) the balance on the current account increases.
  C) the balance of trade increases. D) the balance on the financial account increases.

[bitingbit]

Answer to Question 1

B

Answer to Question 2

D

[naturalchemist]

Correct answers!

[bitingbit]

Great! Please up vote