Answer:
A. True
Explanation:
Internal rate of return abbreviated as IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR, the net present value of the project's cash inflows is set at zero. Getting the actual value of the IRR is through trial and error, or specially programmed software.
IRR shows the growth rate a project or an investment is expected to generate. The higher the value, the better. As a rule, only projects whose IRR is greater than the minimum required rate of return should be accepted. The required rate of return is the same as the cost of capital for the project.
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Answer:
c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.
Explanation:
Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.
However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.
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