Net Investment Refers To

question 173

Multiple Choice

Net investment refers to:

• A)the amount of machinery and equipment used up in producing GDP in a specific year.
• B)the difference between the market value and book value of outstanding capital stock.
• C)gross domestic investment less net exports.
• D)gross investment less consumption of fixed capital.

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Definitions:

Semiannual

Occurring twice a year; every six months.

Par Value

The face value of a bond or stock, as stated by the issuing company, which often bears no relation to its market value.

Straight-Line Method

A depreciation technique in which an asset's cost is evenly reduced over its useful life, assuming constant use and value decline.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt obligations over a period.