When gross private domestic investment exceeds depreciation, it can be concluded that:
A. the economy is exporting more than it imports.
B. net investment is positive.
C. the economy is importing more than it exports.
D. net investment is negative.
Answer: B
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Elasticity of demand equals the ratio of the percentage change in the quantity demanded to the percentage change in the price of the good.
Answer the following statement true (T) or false (F)
Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
A natural monopoly owes its existence to
A) control of a key input. B) persistently declining long-run average costs as scale increases. C) patents. D) increasing marginal returns and the ability to obtain quantity discounts from suppliers.
If a consumer purchases only two goods (X and Y ) and the demand for X is elastic, then a rise in the price of X
a. will cause total spending on good Y to rise. b. will cause total spending on good Y to fall. c. will cause total spending on good Y to remain unchanged. d. will have an indeterminate effect on total spending on good Y.