Which Statement Is True

question 5

Multiple Choice

Which statement is true?

• A)Xn in the United States has been negative every year since the mid-1970s.
• B)Xn in the United States was generally positive for most years from the 1920s until 1971.
• C)Since the mid-1970s,GDP would have been higher without Xn.
• D)All of the statements are true.

---

Definitions:

Initial Cost

The initial expenditure involved in acquiring an asset or starting a project, before any operational or maintenance costs.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Capital Cost Allowance (CCA)

The deduction in the Canadian tax system for depreciation of tangible property that a business uses to generate income.

Original Cost

The initial amount of money spent to acquire an asset, before depreciation or amortization is taken into account.