Policymakers' Use of Stabilization Policy to Eliminate Output Gaps Is

question 80

Multiple Choice

Policymakers' use of stabilization policy to eliminate output gaps is more appropriate when an economy self corrects very ____ and when the output gap is very ____.

• A) rapidly; large
• B) rapidly; small
• C) slowly; large
• D) slowly; small

Calculate and interpret the accounting rate of return on an investment.

Understand and apply net present value (NPV) and investment decision rules in selecting investment projects.

Evaluate the financial impact of decision alternatives in special scenarios such as scrapping or rebuilding units.

Utilize the internal rate of return (IRR) and profitability index in comparing and selecting projects.