Which of the Following Is True

question 667

Multiple Choice

Which of the following is true?

• A) Real federal spending per person was approximately 50 times higher in 1900 than 1800.
• B) Real federal spending per person was approximately 80 times higher in 2010 than 1916.
• C) Real federal spending per person grew slowly under the Reagan Administration during the 1980s, but it increased rapidly under the Clinton administration in the 1990s.
• D) In recent years, government expenditures at the state and local levels have been greater than government spending at the federal level.

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Definitions:

Annual Net Cash Flows

The amount of cash that a company generates or uses in a given year after all income and expenses are accounted for.

Average Rate of Return

A financial ratio that represents the average net profit or return expected on an investment over its lifetime, expressed as a percentage.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, dividing its cost minus salvage value by its useful life, resulting in equal annual depreciation expenses.

Net Present Value

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