The use of real options in capital budgeting
A) may raise the NPV of a capital project.
B) makes the analysis of the project considerably easier.
C) allows management to make decisions more quickly.
D) eliminates the need for calculating the project's risk adjusted discount rate.
A
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In the Monetarist model,
a. monetary policy and not fiscal policy is the prime factor in aggregate demand movements. b. money demand is more volatile than in the Keynesian model. c. expectations are correct on average. d. aggregate supply is not the primary source of business cycles. e. both a and b.
In an efficient economy,
a. no one could be made better off by a change in the way goods are allocated b. revenue for all firms is maximized c. a change in the way goods are allocated could make someone worse off d. goods are allocated fairly among individuals e. no one would be made worse off if there is a change in the way goods are allocated
The prisoner's dilemma:
A. can involve two players. B. can be summarized in a payoff matrix. C. leads to a less-than-ideal outcome for all players. D. All of these statements are true.
A country's government runs a budget deficit when which of the following occurs in a given year?
A) The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations B) Government spending exceeds tax revenue C) The debt owed to foreigners exceeds the debt owed to the country's citizens D) The amount borrow exceeds the interest payment on the national debt E) Interest payments on the national debt exceed spending on goods and services