Additions to the Nation's Capital Stock Are Brought About Through

question 61

Multiple Choice

Additions to the nation's capital stock are brought about through

• A) the current account surplus.
• B) investment.
• C) investment and the current account surplus.
• D) investment and the government budget surplus.
• E) government deficit.

---

Definitions:

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Rate Difference

The disparity in interest rates, often used in the context of comparing rates between two different financial products or within different markets.

Spread

The difference between the bid and the ask price of a security or the difference between the interest rate paid for deposits and received for loans.