Because It Lowers the Amount of Output Per Person,unemployment Results

question 8

Multiple Choice

Because it lowers the amount of output per person,unemployment results in

• A) a shift in the economy's production possibilities frontier
• B) increased workers' incomes
• C) optimism about economic growth
• D) a lower standard of living
• E) rapid inflation

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Definitions:

Floating-rate Bonds

Bonds whose interest rate payments adjust periodically based on an underlying benchmark, making them less sensitive to interest rate changes.

Interest Rate Swap

A financial derivative contract in which two parties exchange interest rate payments on a specified principal amount.

LIBOR

The London Interbank Offered Rate, an interest rate average calculated from estimates submitted by the leading banks in London and used as a reference for lending rates worldwide.

Notional Principal

The term refers to the principal amount, or face value, upon which interest payments or financial derivatives are calculated, without the need for physical exchange of the principal sum.