If depreciation exceeds gross investment:
A. the economy's stock of capital may be either growing or shrinking.
B. the economy's stock of capital is shrinking.
C. the economy's stock of capital is growing.
D. net investment is zero.
B. the economy's stock of capital is shrinking
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When a nation's currency depreciates, the country might
A) have an inflation rate that exceeds the inflation rate in nations with which it trades. B) have an inflation rate below the inflation rate in nations with which it trades. C) be responding to an increase in the demand for its currency. D) be responding to a decrease in the domestic demand for foreign currencies.
Relative to a franchisee, a manager of a company owned store is more likely to
a. Work very hard b. Not work as hard c. Work only evenings d. Work only night shifts
Medical malpractice law is designed to
a. encourage physicians to act as responsible agents for their patients b. punish those providers guilty of intentional misconduct c. provide an income for the insurance firms who sell malpractice insurance d. none of these choices
Suppose that in an economy with lump-sum taxes and no international trade, autonomous investment spending increases by $2 million. If the marginal propensity to consume is 0.75, equilibrium gross domestic product will change by a maximum of
A) $0.5 million B) $1.5 million C) $2.0 million D) $8.0 million E) $15.0 million