Suppose Y = 400 and the Government's Net Tax Rate

question 101

Multiple Choice

Suppose Y = 400 and the government's net tax rate is 10%.If we are told that the government has a budget surplus,then government purchases must be

• A)greater than 30.
• B)less than 30.
• C)greater than 40.
• D)less than 40.
• E)Not enough information to know.

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Definitions:

NPV

Net Present Value, a calculation used to determine the current value of a series of future cash flows.

IRR

Stands for Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by calculating the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Negative

A term used to describe values below zero, or situations characterized by absence or lack rather than presence or availability.

Pull-in Windings

Electromagnetic windings used in a solenoid or relay to initially attract and move the armature to the closed position.