Net investment refers to

A. exports minus imports.
B. the change in investment spending and the change in government expenditures on infrastructure.
C. the change in inventories over a 1-year period.
D. the change in the capital stock after subtracting out depreciation.


Answer: D

Economics

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Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. Real GDP rises and nominal value

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Economics

Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the:

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Economics