Use the Table for the Question(s)below

question 101

Multiple Choice

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

-The profitability index for project B is closest to:

• A)23.34
• B)12.64
• C)0.17
• D)0.12
• E)1.14

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Definitions:

Tax Revenues

The income that is received by a government from taxpayers, used to fund public services and government operations.

Keynesian

A theory in economics that emphasizes the total spending in the economy and its effects on output and inflation.

Monetarist Economists

Economists who believe that the variation in the money supply has major influences on national output in the short run and the price level over longer periods.

Monetary Policy

The process by which the central bank of a country controls the money supply, often targeting an inflation rate or interest rate to ensure economic stability.