The Difference Between Gross Investment and Net Investment Is

question 366

Multiple Choice

The difference between gross investment and net investment is

• A) depreciation.
• B) the capital stock.
• C) equal to saving.
• D) the real interest rate.

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Definitions:

Basket of Goods

A representation of a fixed set of consumer products and services whose total cost is used to measure inflation.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, typically indicating inflation or deflation.

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.