In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the required reserve ratio

Which of the following will be counted as an expenditure in the measurement of GDP? (Assume that none of the transactions is concealed from the relevant authorities.)

A) the value of a used automobile that remains unsold on the dealer's lot B) purchase of a lamp at a neighborhood garage sale C) purchase, using foodstamps, of a loaf of bread D) payment by a parent to her child for doing household laundry E) purchase of flour by a bakery

You are given risky cash flow data for a three-year project:

Year Cash flow 1 $2,000 2 3,000 3 4,000 The initial cash outflow is $6,000; the risk-free interest rate is 6%, and the risk-adjusted discount rate is 10%. Calculate the NPV by both the risk-adjusted discount rate method and the certainty equivalent method in such a way that the NPV will be the same using either method.