Use the Table for the Question(s)below

question 91

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-The net present value (NPV) for project alpha is closest to:

• A)$20.96
• B)$16.92
• C)$24.01
• D)$14.41

Explain the role and effects of automatic stabilizers in the economy.

Compare and contrast the views of Keynesian and conservative economists on the crowding-out effect.

Describe the crowding-out and crowding-in effects and their implications for private investment and economic growth.

Understand the role of government spending, taxation, and budget policies in economic stabilization.

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Definitions:

Proportional Tax

A tax system where the rate of taxation is fixed, meaning the tax rate stays the same regardless of the taxable amount or income.

Average Tax Rate

The portion of total income that is paid as tax, calculated by dividing the total tax amount by the taxable income.

Tax Base

The total amount of assets or revenue that a government can tax to fund its operations and services.