Table 15-4 -Refer to Table 15-4

question 225

Multiple Choice

Table 15-4
$\begin{array}{|l|l|}\hline \text { Civilian labor force } & 100 \text { million } \\\hline \text { Persons unemployed } 15 \text { weeks or longer } & 1.6 \text { million } \\\hline \text { Job losers and persons who have completed temporary jobs (excludes job leavers) } & 3.1 \text { million } \\\hline \text { Total unemployed } & 6.2 \text { million } \\\hline \text { Total unemployed plus discouraged workers } & 7.0 \text { million } \\\hline \text { Total unemployed plus all marginally attached workers } & 8.1 \text { million } \\\hline \begin{array}{l}\text { Total unemployed plus all marginally attached workers plus total employed part-time for } \\\text { economic reasons }\end{array} & 9.2 \text { million } \\\hline\end{array}$

-Refer to Table 15-4. What is the U-5 measure of labor underutilization?

• A)7.5 percent
• B)7.9 percent
• C)8.1 percent
• D)26 percent

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Definitions:

Forward Rate

The forward rate is the agreed-upon interest rate for a financial transaction that will occur at a future date, often used in the context of foreign exchange and bonds.

Interest Rate Parity

An economic theory stating that the difference between interest rates in two countries is equal to the expected change in exchange rates between their currencies.

Relative PPP

Relative Purchasing Power Parity, a theory which states that the rate of inflation between two countries will be offset by an equal but opposite change in the exchange rate.

International Fisher

An economic theory stating that the difference in nominal interest rates between two countries is directly proportional to the expected change in the exchange rates between their currencies.