In the Full Aggregate Expenditure Model with Net Exports Included

question 93

Multiple Choice

In the full aggregate expenditure model with net exports included:

• A) C + G + X = S + T + M.
• B) C + G + M = S + T + X.
• C) I + G + M = S + T + X.
• D) I + G + X = S + T + M.

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Definitions:

NPV

Net Present Value - a calculation used to assess the profitability of a project or investment by summing the present values of all cash flows associated with it.

IRR

Internal rate of return. A capital budgeting technique that rates projects according to their expected return on invested funds. The higher the return the better.

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.