Refer to the Diagrams

question 66

Multiple Choice

Refer to the diagrams. Other things equal, curve B will shift upward when

• A) the level of GDP increases.
• B) the interest rate increases.
• C) curve A shifts to the left.
• D) curve A shifts to the right.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, capturing the company's operational, investing, and financing activities.

Cost Of Capital

The minimum return rate a company needs to achieve on its investments to preserve its market valuation and draw in financing.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.