Which of the Following Statements Is True

question 131

Multiple Choice

Which of the following statements is true?

• A) Capital and gross private investment are flow variables.
• B) Capital and gross private investment are stock variables.
• C) Capital is a stock variable while gross private investment is a flow variable.
• D) Capital is a flow variable while gross private investment is a stock variable.

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Definitions:

Government Bonds

Securities issued by a government to raise funds from the public with a promise to pay periodic interest payments and to return the face value on maturity.

Inflation

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

GDP Deflator

A measure of the price level for all domestically produced goods and services in an economy, indicating the rate of inflation or deflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth.