Because It Has a Direct Effect on the Hiring Decisions

question 31

True/False

Because it has a direct effect on the hiring decisions of firms,a change in business confidence has a much larger impact on the level of economic activity than does a change in consumer confidence.

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Definitions:

NPV Project

A project evaluated using the Net Present Value method, which calculates the present value of all cash flows associated with the project, minus the initial investment.

Straight-Line

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Tax Bracket

A range of incomes taxed at a specific rate; tax brackets result in a progressive tax system, where taxation progressively increases as income grows.