Which of the Following Should Be Accounted for in the Capital

question 58

Multiple Choice

Which of the following should be accounted for in the capital budgeting decision?

• A) Externalities.
• B) Intangible considerations that cannot be measured.
• C) Opportunity costs.
• D) Sunk costs.

Identify the determinants of investment and the concept of the investment demand curve.

Recognize how shifts in the aggregate demand and aggregate expenditure curves affect the economy.

Understand the dynamics of the consumption function, including the marginal propensity to consume (MPC) and save (MPS).

Recognize the role of autonomous spending in shifting the aggregate demand and expenditure curves.