If Depreciation (Consumption of Fixed Capital) Exceeds Gross Investment, It

question 90

Multiple Choice

If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that:

• A)nominal GDP is rising but real GDP is declining.
• B)net investment is negative.
• C)the economy is importing more than it exports.
• D)the economy is expanding.

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Definitions:

Age of Revolution

A period from approximately 1774 to 1849 during which numerous significant revolutions occurred across the globe, including the American, French, and Industrial Revolutions.

French Revolution

A period of far-reaching social and political upheaval in France and its colonies beginning in 1789, which fundamentally changed the course of French history.

Mexican Revolution

A major armed struggle from 1910 to 1920 that transformed Mexican culture and government, leading to the end of the Porfiriato and the establishment of a constitutional republic.

Sugar Act

A British law enacted in 1764 that imposed a tax on sugar and molasses imported into the American colonies, leading to widespread discontent.