If the Government of Canada Were to Establish an Electronic

question 76

Essay

If the government of Canada were to establish an electronic job bank on the Internet.How could such a job bank reduce frictional unemployment? Why would it most likely have no effect on cyclical unemployment?

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Definitions:

Expectations Theory

A theory that explains the term structure of interest rates based on the idea that long-term interest rates are determined by the market's expectations of future short-term rates.

Yield Curve

A graph showing the relationship between bond yields and maturity dates, typically indicating expected interest rate changes.

Market Segmentation Theory

A theory suggesting that the bond market is segmented on the basis of maturity, influencing interest rates and investment strategies.

Debt Market

A market where investors buy and sell debt securities, typically bonds, which are promises to repay borrowed money.