If the interest rate is 25%, but cash flows change such that the investment renders a cash flow of $500 in year 1 and $800 in year 2 instead of year 3, would the investment take place?
a. Yes since NPV>0
b. No since NPV<0
c. Yes since the present value of the cash flows is greater than zero
d. No since the present value of the cash flows is lesser than zero
b
Economics
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The government has a budget deficit if
A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.
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During the financial crisis of 2007-2009, both fiscal and monetary policy turned more expansionary
a. True b. False Indicate whether the statement is true or false
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