Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A)Investment expenditures included in the spending approach to GDP are equal to net investment.
• B)There is not much difference between gross and net investment.
• C)Net investment is usually larger than gross investment.
• D)Net investment is much lower than gross investment.
• E)None of these

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Definitions:

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada, offering tax benefits.

Maturity Value

The amount of money an investment will grow to over a period of time at a specified interest rate.

Interest Rate

The percentage of a loan that is added on as interest for the borrower, usually stated as an annual rate.

Economic Value

A measure of the benefit provided by a good or service to an economic agent.