Asked by
Amelia Stone
on Dec 16, 2024Verified
The capital stock of an economy increases:
A) whenever money in circulation is decreased.
B) whenever gross investment is positive.
C) whenever gross investment is negative.
D) only if net investment is positive.
E) only if gross investment is zero.
Capital Stock
The total amount of physical, financial, and human capital available in an economy, used to produce goods and services.
Gross Investment
The total amount of investment spent on new fixed investment plus replacement investment, without accounting for depreciation.
Net Investment
The total amount invested in buying new capital and replacing depreciated capital within a specific period.
- Analyze the consequences of variations in capital stock for the economic output capacity.
Verified Answer
FB
Learning Objectives
- Analyze the consequences of variations in capital stock for the economic output capacity.