The Congressional Act Passed in 1978 That Established Specific Numerical

question 16

Multiple Choice

The congressional act passed in 1978 that established specific numerical goals for the unemployment rate and the inflation rate to be achieved by 1983 was the

• A) Federal Reserve Act.
• B) Gramm-Rudman Act.
• C) Employment Act.
• D) Humphrey-Hawkins Act.

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Definitions:

Average Investment

The mean amount of capital invested in a particular asset, project, or portfolio over a specific time period.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return; used in financial analysis to assess the value of future income.

Capital Investment

The expenditure of funds by a firm to acquire physical assets, such as property, plant, or equipment, to improve its long-term income and profitability.

Net Present Value Method

A method of analysis of proposed capital investments that subtracts the amount to be invested from the present value of the cash flows expected from the investments.