Net investment equals
A. depreciation plus GDP.
B. gross investment minus final sales.
C. GDP minus final sales.
D. gross investment minus depreciation.
Answer: D
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Economic growth can be defined as
A) the rate of growth in the productivity of labor. B) the rate of growth in the productivity of capital. C) the rate of growth of labor plus the rate of depreciation of capital. D) the rate of growth of labor plus the rate of growth of capital plus the rate of growth in the productivity of labor and capital.
If the price elasticity of demand for a good is elastic, then consumers are relatively unresponsive with respect to the quantity purchased when the price changes
a. True b. False Indicate whether the statement is true or false
What is the central role of financial intermediaries in a market economy?
A) the creation and printing of money B) keeping the price level stable C) bringing together savers and borrowers D) providing safe deposit boxes for people and businesses
The Federal Reserve System is organized into
A) one large district covering the entire United States. B) three districts, one for each of the countries in North America. C) 12 districts, dividing up the countries in North America. D) 50 districts, one per state. E) 12 districts, dividing up the United States.