Frictional Unemployment Is the Result of

question 231

Multiple Choice

Frictional unemployment is the result of

• A) technological change or foreign competition.
• B) normal labor market turnover.
• C) a slowdown in the rate of economic expansion.
• D) irresponsible workers with poor work habits.

---

Definitions:

Compensating Balance

A minimum account balance that a company agrees to maintain in a bank in return for banking services.

Business Loan

A loan specifically intended for business purposes, providing the necessary capital for start-up or expansion.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference point for various types of loans.

Rate Of Interest

The percentage at which interest is charged or paid over a specific period of time on borrowed or saved money.