When There Is an Increase in the Duration of Unemployment

question 43

Multiple Choice

When there is an increase in the duration of unemployment, the U.S. Congress typically responds by

• A) lowering income taxes.
• B) extending unemployment benefits.
• C) encouraging unemployed U.S. workers to seek employment overseas.
• D) redefining "unemployed" so the unemployment rate does not look so bad.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the corporation, reducing the amount of outstanding stock on the open market.

Voting Rights

The entitlement of shareholders to vote on company matters, typically exercised at annual meetings or special resolutions, often proportional to the number of shares held.

Stock Splits

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Par Value Method

A method in accounting for the transaction of shares, where shares are recorded in accounts at their face or nominal value, often used in transactions related to bonds or share capital.