Holding Other Factors Constant,the Implementation of a Federal Job Retraining

question 18

Multiple Choice

Holding other factors constant,the implementation of a federal job retraining program would likely

• A) reduce cyclical unemployment and the natural rate of unemployment.
• B) reduce structural unemployment and the natural rate of unemployment.
• C) reduce frictional unemployment and the natural rate of unemployment.
• D) increase the natural rate of unemployment.

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Definitions:

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Financial Leverage

The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.

Operating Leverage

Operating leverage refers to the degree to which a company or project can increase operating income by increasing revenue.

Total Leverage

The combination of operating leverage (affecting operating income) and financial leverage (affecting net income), indicating total risk.