Consider the Investment Component (I_a)of GDP

question 77

Multiple Choice

Consider the investment component (I_a) of GDP.The change in the country's capital stock during a year is equal to

• A)gross investment.
• B)capital consumption allowance.
• C)net investment.
• D)net change in inventories plus capital consumption allowance.
• E)gross fixed investment.

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Definitions:

Market Efficiency

A concept that describes how well market prices reflect all available information, making it difficult to consistently achieve higher returns.

Strong Form Efficiency

A theory that states all information, both public and private, is completely reflected in the prices of stocks, making it impossible to beat the market consistently through expert stock selection or market timing.

Semi-strong Form Efficiency

A theory in financial economics that implies all public information is already calculated into stock prices, meaning future price movements cannot be predicted using only public information.

Financial Markets

Financial markets are marketplaces where individuals and entities can trade securities, commodities, and other financial instruments in order to facilitate funding, investing, and risk management.