An Increase in Uncertainty Will Lead To:
A) an Increase $\vec { v }$

question 34

Multiple Choice

An increase in uncertainty will lead to:

• A) an increase in
• \(\vec { v }\) ,but a decrease in
• \(\vec{ M }\) .
• B) a decrease in
• \(\vec { v }\) ,but an increase in
• \(\vec{ M }\) .
• C) an increase in both
• \(\vec { v }\) and
• \(\vec{ M }\) .
• D) a decrease in both
• \(\vec { v }\) and
• \(\vec{ M }\) .

---

Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in a faster depreciation of assets in the early years of their life.

Depreciation Expense

The organized allocation of a tangible asset's expenditure over its life of usefulness.

Straight-Line Method

A method of depreciation that allocates an equal amount of the asset's cost to each accounting period over its useful life.

Depreciation Expense

Apportioning the cost of a concrete asset over its duration of use.