Net Investment Will Be Negative If

question 98

Multiple Choice

Net investment will be negative if

• A) depreciation is less than gross private domestic investment.
• B) depreciation is greater than gross private domestic investment.
• C) depreciation is positive.
• D) depreciation is negative.

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Definitions:

Intrinsic Value

The real or fundamental value of a stock, determined through analysis of the company's financials and potential.

Constant-Growth DDM

A version of the dividend discount model that assumes dividends grow at a constant rate indefinitely.

Dividend

Funds disbursed by a corporation to its owners, often from the company's profits, as a profit sharing.

Expected Growth Rate

The predicted percentage increase in the value of an investment, asset, or economy over a certain period of time.