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

question 3

Multiple Choice

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

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

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

Certificate of Authority

A certificate of authority is an official document granting a company the license to do business in a particular jurisdiction outside of its original registration.

Franchise Agreements

are legal contracts between the owner of a trademark, brand, or business system (franchisor) and an individual or entity (franchisee), granting the right to operate a business under the franchisor's model and brand.

Trade Secret

A type of intellectual property that comprises formulas, practices, processes, designs, instruments, patterns, or compilations of information not generally known or reasonably ascertainable, which gives a business advantage over competitors who do not know or use it.