The Phillips Curve shows that in general a high amounts of u

The Phillips Curve shows that, in general: a. high amounts of unemployment in an economy will coincide with low inflation. b. low amounts of unemployment in an economy will coincide with low inflation c. high amounts of unemployment in an economy will coincide with high inflation. d. None of these statements is true. 46. Your Uncle Harry gives you stock in Samsung for your birthday. The stock is an example of: a. 48. foreign direct investment. b. foreign portfolio investment. c. importing. d. exporting. In the market for loanable funds in an open economy, the demand for loanable funds: a. b. c. d. 49. can be demanded for domestic investment or international investment. is equal to national income. is equal to private investment. is equal to public investment. ? 50. When interest rates in the U.S. decline, we can expect: a. b. c. d. capital inflows and capital outflows to decrease. capital inflows and capital outflows to increase. capital inflow to decrease, and capital outflow to increase. capital outflow to decrease, and capital inflow to increase.

Solution

46. Option a. As the Philips curve represents the inverse relationship between unemployment and inflation rate
48. Option b. It is investment in stocks and bonds
49. Option a. Since the economy is open the loanable funds could be used for domestic and foreign investments
50. Option c. As the interest rate falls, the return on investment reduces which discourages foreign investments and domestic investors would invest in other countries.