Suppose the Price Level Is Constant,output Is Demand-Determined,and the Economy

question 143

Multiple Choice

Suppose the price level is constant,output is demand-determined,and the economy is closed with no government.If the consumption function is C = (2/3) Y,then the simple multiplier is

• A)2/3.
• B)1.
• C)2.
• D)3.
• E)Insufficient information to know.

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Definitions:

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to the present value using a specific rate, often used to assess the profitability of an investment.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used to analyze the profitability of an investment.

Projected Annual Cash Inflow

An estimate of the total money expected to be received by a company over a year from its operational activities.

Net Present Value

Net present value (NPV) is a financial calculation used to assess the profitability of an investment or project, by discounting all expected future cash flows to their present value using a specific discount rate.