Consider the Investment Component of GDP

question 36

Multiple Choice

Consider the investment component 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.

---

Definitions:

Project Cost

The total financial expenditure incurred in the planning, execution, and completion of a project.

Returns

The gains or losses made from an investment over a particular period, often expressed as a percentage of the investment's initial cost.

Interest Rate

The percentage of an amount of money charged by lenders to borrowers for the use of money, usually expressed as an annual percentage.

Bonds

Fixed-income securities issued by corporations, municipalities, or governments to finance projects or operations, representing a loan made by an investor to the issuer.