If Depreciation Is Smaller Than Gross Investment

question 21

Multiple Choice

If depreciation is smaller than gross investment,

• A)Net investment exceeds depreciation.
• B)Gross investment is negative.
• C)Net investment is positive.
• D)The nation's capital stock is getting smaller.

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Definitions:

Weekly Disbursements

Refers to payments made by a business on a weekly basis, potentially including payroll, supplier payments, or other operational expenses.

Interest Rate

The fee, represented as a proportion of the principal amount, that a lender imposes on a borrower for the utilization of assets.

Initial Cash Balance

The amount of cash a company has at the beginning of a specific accounting period.

Weekly Disbursements

The process of distributing funds or payments on a weekly basis.