Suppose a government starts spending less than it receives in tax revenue each year. All else equal, this action would cause the net present value of firms' projects to do what a. Increase b. Decrease c. Change uncertainly d. Not change

Suppose a government starts spending less than it receives in tax revenue each year. All else equal, this action would cause the net present value of firms' projects to do what a. Increase b. Decrease c. Change uncertainly d. Not change

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 7Q

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Question

Suppose a government starts spending less than it receives in tax
revenue each year. All else equal, this action would cause the net
present value of firms' projects to do what:
a. Increase
b. Decrease
c. Change uncertainly
d. Not change

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