Author Question: Frictional unemployment is the temporary unemployment that results from the search time that occurs ... (Read 193 times)

luvbio · **on:** Jun 30, 2018

Frictional unemployment is the temporary unemployment that results from the search time that occurs when people are searching for suitable jobs and firms are looking for suitable workers.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Suppose the 12-month interest rate on a U.S. Treasury bill is 16 percent, and the one-year interest rate on a comparable British Treasury bill is 6 percent. The exchange rate today is 2.00 per pound. What must be the expected exchange rate at maturity for interest rate parity to hold?
a. 1.00 = 0.50 pound
b. 1.00 = 0.75 pound
c. 1 pound = 2.20
d. 1 pound = 1.80
e. 1 pound = 2.50