The Concept of Capital Budgeting Refers to the Idea That

question 111

Multiple Choice

The concept of capital budgeting refers to the idea that

• A)government budgets should be designed to be balanced,while fully recognizing that changing economic circumstances may prevent such balance.
• B)if the debt-to-GDP ratio rises to unacceptable levels,the central bank can monetize portions of the government debt.
• C)counter-cyclical fiscal policy is included in the government budget.
• D)the government would classify all expenditures as either consumption (benefiting current generations)or investment (benefiting future generations).
• E)the government would direct a fixed percentage of its budget toward investment expenditure that would benefit future generations.

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Definitions:

Technological Innovations

Novel inventions and improvements in technology that significantly change how tasks are accomplished or lead to the creation of new products.

Social Innovations

Innovations that are social in both their ends and means, specifically designed to meet social needs and create new social relationships or collaborations.

Performance Anxiety

The extreme fear or nervousness before or during an individual's performance (such as public speaking, performing arts, or sports), which can impair their ability to perform effectively.

Social Phobia

A rephrased definition: A specific anxiety disorder characterized by a significant amount of fear in one or more social situations, causing considerable distress and impaired ability to function in at least some parts of daily life.