If an Economy's Depreciation Is Greater Than Its Gross Investment

question 17

Multiple Choice

If an economy's depreciation is greater than its gross investment, then

• A) net investment is negative and saving is negative.
• B) net investment is positive and saving is negative.
• C) net investment must equal saving.
• D) net investment is positive and saving is positive.
• E) the economy's capital stock decreases.

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Definitions:

Sounding Board

An individual or group used to test ideas or concepts to gauge their validity or effectiveness before public release.

Middle Ages

A historical period in Europe stretching from the 5th to the late 15th century, characterized by feudalism, the spread of Christianity, and the emergence of the Renaissance in Italy.

European History

The study of past events and developments on the European continent, including its cultures, nations, and political establishments.

Capitalization

The use of uppercase letters at the beginning of sentences or for proper nouns, following specific rules in writing.