If the Economy's Capital Stock Increases Over Time

question 111

Multiple Choice

If the economy's capital stock increases over time

• A) net investment is positive.
• B) depreciation is less than zero.
• C) depreciation exceeds gross investment.
• D) gross investment equals depreciation.

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Definitions:

Ledger

A comprehensive book or database of financial accounts where all transactions are recorded, typically categorized by account.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to check the accuracy of financial transactions.

Account Balances

These reflect the amount of money within a financial account at any given time.

Transaction

An economic event that involves a transfer of value between two or more entities, leading to a change in their financial position.