Cyclical Unemployment Is Caused by

question 37

Multiple Choice

Cyclical unemployment is caused by

• A)frictional and structural unemployment
• B)frictional but not structural unemployment
• C)structural but not frictional unemployment
• D)neither frictional nor structural unemployment

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Definitions:

Maturity Risk

Maturity risk pertains to the uncertainty and potential loss associated with holding a bond or other fixed-income investment until its maturity date.

Coupon

The percentage rate of interest a bond yields annually, based on its principal amount.

Current Yield

The annual return of an investment expressed as a percentage of its current price.

Rate of Return

The gain or loss on an investment over a specified period, proportionally expressed as a percentage of the investment's initial cost.