If Net Investment Spending in a Nation Is Zero, We

question 70

Multiple Choice

If net investment spending in a nation is zero, we can conclude that:

• A)gross investment exceeds the capital consumption allowance.
• B)the capital consumption allowance exceeds gross investment.
• C)imports equal exports.
• D)gross investment equals the capital consumption allowance.
• E)no investment goods were produced in the economy.

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Definitions:

Formal Authority

The power granted to an individual or organization by virtue of position or role, allowing them to make decisions and enforce rules.

Coping With Uncertainty

The methods and strategies individuals or organizations employ to manage and adapt to situations where outcomes are unpredictable or unknown.

Prevention

Actions or measures taken to stop something undesirable from happening, such as illness, error, or conflict.

Substitution

The act of replacing one element or factor with another, often in economic, mathematical, or chemical contexts.