Depreciation or consumption of fixed capital measures:
A. the decline in the value of inventories caused by inflation.
B. the loss of productive ability due to capital intensive production.
C. capital that is wasted in the production process.
D. the value of existing capital stock used up in the production process.
Answer: D
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A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases E) does not change; increases
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A) an increase in inflation B) a positive output gap C) a positive inflation gap D) all of the above E) none of the above
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A) transactions demand B) precautionary demand C) asset demand D) qualitative demand
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