An Analysis in Which a Company Would Like to Know

question 72

True/False

An analysis in which a company would like to know the effect of a price change on the NPV of a project, holding all other variables and forecasts constant, is one type of sensitivity analysis.

---

Definitions:

Positive Theories

Positive theories attempt to describe how the world is, focusing on factual statements and cause-effect relationships without prescribing what actions should be taken.

Congressional Budget Office

The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

John Maynard Keynes

A British economist whose theories on government intervention in economies (Keynesian economics) have greatly influenced modern economic policies.

Council of Economic Advisers

A panel of three noted economists who advise the President of the United States on economic policy.