Which of the Following Statements Is Necessarily True

question 53

Multiple Choice

Which of the following statements is necessarily true?

• A)If two projects are mutually exclusive, the one with the higher internal rate of return should be selected so long as its internal rate of return is greater than the cost of capital for
• The firm.
• B)If the internal rate of return of a project is equal to its required rate of return, the project will have a positive NPV.
• C)If the internal rate of return of a project is greater than 0, the project will also have a positive NPV.
• D)If the internal rate of return of a project is less than its required rate of return, the project should always be rejected.

Understand the relationship between disposable income and consumption.

Comprehend the concept of autonomous consumption.

Grasp the significance of the marginal propensity to consume (MPC) and save (MPS).

Analyze the variations in average propensity to consume (APC) and save (APS) across different income levels.

---

Definitions:

Fluent Aphasia

A condition characterized by the ability to produce a smooth flow of speech but with a lack of meaning or with semantic errors, typically resulting from damage to the temporal lobe.

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating communication between them.

Nonfluent Aphasics

Individuals who struggle with speech production often characterized by slow, labored speech and struggle to form complete sentences, typically due to brain damage.

Fluent Aphasics

Individuals who can speak with normal fluency but have difficulty in understanding language or finding the correct words due to a brain disorder.