If Depreciation (Consumption of Fixed Capital) Exceeds Gross Domestic Investment

question 37

Multiple Choice

If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude 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's production capacity is expanding.

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Definitions:

Declaration Date

The specific date on which a company announces a dividend or distribution to its shareholders.

Dividends Payable

A liability recorded on the company's balance sheet representing the amount of declared dividends that are owed to shareholders but have not yet been paid.

Financial Statements

Structured reports that detail the financial activities and conditions of a business, including the balance sheet, income statement, and cash flow statement.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.