Depreciation Is

question 84

Multiple Choice

Depreciation is

• A)fall in the value of an exchange rate.
• B)the decrease in the value of capital resulting from its use and obsolescence.
• C)the decrease in the purchasing power of a dollar because of inflation.
• D)part of consumption expenditure.
• E)part of net domestic product at factor cost.

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Definitions:

Real Interest Rates

The interest rates adjusted for inflation, more accurately representing the cost of borrowing and the yield on savings than the nominal interest rate.

Productive Projects

Initiatives or activities undertaken by firms or individuals that result in increased outputs or efficiency.

Future Incomes

Refers to the earnings or revenue that an individual or entity expects to receive in a future period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.