For Any Given Year, the Capital Stock Can Be Considered

question 14

Multiple Choice

For any given year, the capital stock can be considered to be exogenously determined because

• A) usually gross investment just matches depreciation, so that the capital stock is fixed.
• B) investment projects, even in excess of depreciation, generally take more than 12 months to install.
• C) accounting conventions subtract depreciation of the capital stock from gross investment in their computation of net investment for the year.
• D) interest rates, the price of capital, hardly ever move significantly over the course of any 12-month period.
• E) all of the above.

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Definitions:

FireWire

A high-speed serial bus interface standard for connecting digital devices, especially audio and video equipment, to a computer, allowing for rapid data transfer.

IEEE 1394

An interface standard for a serial bus for high-speed communications and isochronous real-time data transfer, commonly referred to as FireWire.

RJ-45

A type of connector used on Ethernet network cards and ports. Used to connect a device to the wired network.

RJ-11

A type of connector used with analog modems and traditional phone jacks.