All of the Following Are Possible Explanations for the Trends

question 51

Multiple Choice

All of the following are possible explanations for the trends in the U.S. unemployment rate in the last half of the twentieth century and early twenty-first century except:

• A)the changing composition of the U.S. workforce.
• B)sectoral shifts.
• C)a generally increasing real value of the minimum wage.
• D)the links between unemployment and productivity.

---

Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, reflecting the returns required by equity owners alone.

Annual Coupon

The total interest payments made to bondholders each year, expressed as a percentage of the bond's face value.

Debt

Debt refers to the amount of money borrowed by one party from another, subject to repayment along with interest, used by businesses and governments to finance operations or projects.