Which of the Following Is True

question 58

Multiple Choice

Which of the following is true?

• A)Frictional unemployment implies a lack of available jobs.
• B)During a recession,cyclical unemployment will be low.
• C)When an economy is at full employment,actual unemployment will be less than the natural rate of unemployment.
• D)When actual GDP equals potential GDP,the actual unemployment rate will equal the economy's natural rate of unemployment.

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and satisfy its shareholders and creditors.

Capital Budgeting

The approach taken by a business to appraise potential key projects or investments.

Equity Investment

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, primarily through the ownership of equity.

Separately Funded

A financial arrangement where specific projects or objectives are funded independently from an organization's main operating budget.