All of the Following Are Possible Explanations for the Trends

question 57

Multiple Choice

All of the following are possible explanations for the trends in the Canadian unemployment rate in the last half of the twentieth century except:

• A) the changing composition of the Canadian work force.
• B) sectoral shifts.
• C) a generally increasing real value of the minimum wage.
• D) the links between unemployment and productivity.

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Definitions:

Required Return

The minimum expected return on an investment necessary to compensate for the risk taken by the investor, including the time value of money and inflation.

Payback

A method of investment appraisal that calculates the time needed for an investment to generate cash flows sufficient to recover the initial outlay.

Four Year Payback

A capital budgeting method that calculates the time required to recoup the initial investment in a project, specifically over a period of four years.