What Can Be Concluded If,in a Certain Year,net Investment Is

question 168

Multiple Choice

What can be concluded if,in a certain year,net investment is minus $5.8 billion?

• A)That gross investment exceeds depreciation by $5.8 billion.
• B)That the economy is expanding.
• C)That depreciation exceeds gross investment by $5.8 billion.
• D)That the economy produced no capital goods at all in the year in question.
• E)That more capital goods were produced than were used up in production.

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Definitions:

Dual Purpose Corporation

A business entity designed to operate for both profit and to achieve a social or charitable goal.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.

Business Losses

Business losses are the negative financial impacts a business suffers, often reflected in its financial statements as expenses exceeding revenues.

Personal Liability

The legal responsibility of an individual to fulfill obligations or debts out of their own assets.