If in Some Year Gross Investment Was $120 Billion and Net

question 14

Multiple Choice

If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock

• A) may have either increased or decreased.
• B) increased by $65 billion.
• C) increased by $55 billion.
• D) decreased by $55 billion.

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Definitions:

Cash Dividends

Dividends paid to shareholders by a corporation, ordinarily from its profit earnings.

Net Cash

The amount of cash that is available after all debts and obligations have been settled, reflecting a company's liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, as part of a company's financial operations.

Cash Dividend

A distribution of a company's earnings to shareholders, decided by the board of directors, and paid in the form of cash.