Which of the Following Is One Possible Explanation for the Change

question 21

Multiple Choice

Which of the following is one possible explanation for the change in the natural rate of unemployment in the United States during the 1970s?

• A)contractionary fiscal policy
• B)an increase in the proportion of labor contracts that were indexed
• C)contractionary monetary policy
• D)all of the above
• E) none of the above

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Definitions:

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Working Capital

An indicator of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or to evaluate the attractiveness of an investment.