Frictional Unemployment Is Thought to Explain

question 412

Multiple Choice

Frictional unemployment is thought to explain

• A)relatively short spells of unemployment, as is structural unemployment.
• B)relatively long spells of unemployment, as is structural unemployment.
• C)relatively short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
• D)relatively long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.

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Definitions:

Deposits

Funds placed into an account at a financial institution for safekeeping and to earn interest.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury. They carry a fixed interest rate and have maturities ranging from 20 to 30 years.

Money Supply

The comprehensive sum of all available financial assets within an economy at a particular time, including cash, coins, and account balances in checking and savings.