-Statement I

question 211

Multiple Choice

-Statement I.Technological advance pushes a country's production possibilities frontier outward.
Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve by investing in a particular asset.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Required Discount Rate

The minimum expected rate of return on an investment, used in the discounting process of present value calculations.