Question

1.

Inflation Rate (%)	Unemployment Rate (%)
5	2
3	4
1	6
0	7

Use the data in the accompanying table and the multi-point line tool to plot a short-run Phillips curve and label it "PC." (draw a graph and label PC)

2.

Who will NOT be hurt if the United States monetizes its debt?

	people on fixed incomes
	people who own checking accounts
	lenders who receive fixed payments
	people who make fixed mortgage payments

3.

Credit default swaps:

	were accurately priced before the housing market collapsed.
	are a type of collateralized debt obligation.
	made AIG the most profitable company in the United States.
	are a type of insurance against defaults.

Answer 1

2):-D is right option,people who make fixed mortgage payment.

Constant/fixed Payment Mortgage (CPM) is defined as the each monthly payment includes payment of interest and paying off part of principal

3) :- C is right option

Credit Default Swap is defined as a contract that provides insurance against the risk of default by a company or a country (reference entity).

The protection buyer pays a premium known as the credit default spread and it is paid for life of contract or until default.

It is OTC instrument.

Sorry for question number 1