Many Economists Would Argue That Some Frictional Unemployment

question 78

Multiple Choice

Many economists would argue that some frictional unemployment

• A) creates massive economic disruptions and should be eliminated as quickly as feasible.
• B) should be eliminated whatever the cost.
• C) no longer exists because increased unemployment benefits have generally solved this problem.
• D) cannot and probably should not be eliminated.

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Definitions:

Coupon Bond

A type of bond that offers periodic interest payments to its holder, typically paid semi-annually, until maturity.

Duration

Duration is a measure of the sensitivity of the price of a financial asset to a change in interest rates, often used in the context of bonds to describe how price is affected by changes in rates.

Annual Coupon

The yearly interest payment paid to bondholders, typically expressed as a fixed percentage of the bond's face value.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is repaid to the investor.