Investment Spending Averages About Two-Thirds of GDP, Yet Declines in Investment

question 74

True/False

Investment spending averages about two-thirds of GDP, yet declines in investment account for only about one-seventh of the declines in GDP during recessions.

---

Definitions:

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income, and is not expected to be consumed or converted into cash within a year.

Usefulness

The degree to which something serves a practical purpose or satisfies a need.

Physical and Functional

Characteristics referring to the tangible aspects and performance capabilities of an asset or system.

Fixed Asset

Long-term tangible property, plant, or equipment that a company owns and uses in its operations to generate income, not expected to be consumed or converted into cash within a year.