Excluding the Inventory Component, Which of the Following Statements Is

question 49

Multiple Choice

Excluding the inventory component, which of the following statements is accurate?

• A) Gross investment must be nonnegative, but net investment must be negative if the desired level of capital is smaller than last year's capital stock.
• B) Gross investment can be either positive or negative, but net investment must be negative as long as the desired level of capital is smaller than last year's capital stock.
• C) Gross investment must be nonnegative, but net investment can be negative or positive if the desired level of capital is smaller than last year's capital stock.
• D) Gross investment must be nonnegative because net investment must always be positive.
• E) None of the above.

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Definitions:

Shen Zhou

A prominent Chinese painter during the Ming Dynasty, known for his landscape paintings and contribution to the Wu School of painting.

Lofty Mount Lu

A renowned mountain located in Jiangxi Province, China, famous for its natural beauty, cultural history, and prominence in Chinese poetry and painting.

Southern School

In Chinese painting, it refers to a school or style focused on more expressive, spontaneous techniques, emphasizing the spiritual and emotional aspects of art, distinguished from the more formal Northern School.

Imperial Palace

The official residence of an emperor or empress, often grandiose and lavishly decorated, symbolizing the sovereign's power and status.