Use the Table for the Question(s) Below

question 44

Multiple Choice

Use the table for the question(s) below.

-If the risk-free interest rate is 10%,then the NPV for "moe" is closest to:

• A) -3.64
• B) 2.73
• C) 3.18
• D) 3.64

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Definitions:

Government Purchases

Expenditures by the government on goods and services that directly increase the economy's productive capacity.

Autonomous Net Taxes

Taxes that are not influenced by the level of economic activity, such as fixed taxes.

Government Purchases

Government purchases refer to spending by government entities on goods and services that directly contribute to the economy's aggregate demand.

Aggregate Demand

The total demand for all goods and services within a particular market or economy.