Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately

Which of the following about unemployment is true?

a. The unemployment rates of the major European economies have been lower than that of the United States during the last decade. b. Compared to the U.S., European labor markets are characterized by less extensive regulation and less generous unemployment benefits. c. High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment. d. The natural rate of unemployment decreases when youthful workers expand as a proportion of the workforce.

M2 includes M1 plus

A) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. B) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares. C) checking account deposits, large-denomination time deposits, and noninstitutional money market fund shares. D) currency in circulation, savings account balances, and small-denomination time deposits.