Sectoral Shifts Contribute to Frictional Unemployment

question 284

True/False

Sectoral shifts contribute to frictional unemployment.

---

Definitions:

Government Bonds

Debt securities issued by a government to finance its expenditures, often considered a safe investment.

Market Rate

The prevailing interest rate available in the marketplace for loans or savings, often influenced by the central bank's policies, supply and demand, and other economic factors.

Negative Excess Reserves

A situation where banks hold less in reserves than what is required by regulations, a condition that could lead to liquidity issues.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against specified deposit liabilities.