When the Fed purchases additional securities and shifts to a more expansionary monetary policy,
a. the inflation rate will rise almost immediately.
b. the growth of output and employment will increase quickly.
c. several months will typically pass before the shift in policy exerts much impact on output and employment.
d. this policy will eventually lead to a decline in the general level of prices if it is continued for a prolonged period of time.
C
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A new entrant is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
A new public offering that significantly shifts the supply curve for a firm's shares will
a. have no impact on the stock's price b. decrease the stock's price c. increase the stock's price d. decrease the value of the firm's previously issued bonds e. decrease the firm's working capital
Cyclical unemployment refers to unemployment resulting from
a. a mismatch of skills b. being in the wrong location at the wrong time c. the time and monetary cost of finding the best job d. climatic changes in weather affecting employment, such as agriculture and fishing e. periodic declines in business activity.
David recently received an inheritance, and he is planning to invest the inheritance in one of four stock portfolios. Which of these portfolios would you expect to have the highest risk?
a. A portfolio with an average annual rate of return of 5%. b. A portfolio with an average annual rate of return of 8%. c. A portfolio with an average annual rate of return of 10%. d. A portfolio with an average annual rate of return of 14%.