Which of the Following Is the Factor That Leads to Business

question 240

Multiple Choice

Which of the following is the factor that leads to business cycles in the Keynesian business cycle theory?

• A) an unexpected change in aggregate demand
• B) a change by the Fed in the growth rate of the quantity of money
• C) a change in business confidence
• D) a change in the growth rate of productivity

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Definitions:

Operating Expenses

Expenses that a business incurs through its normal business operations, such as sales and marketing, research, and development costs.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the corporation's goal of wealth maximization.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a uniform manner.

Capital Budgeting

A procedure for examining and picking long-term investment opportunities that match the goal of wealth maximization for the firm.