When Is Net Investment Equal to Investment

question 99

Multiple Choice

When is net investment equal to investment?

• A) never
• B) only if depreciation is zero
• C) always
• D) if the economy is in a steady state
• E) whenever the economy is not in a steady state

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Definitions:

Spread

Spread can refer to the difference between the bid and ask prices of financial instruments or the difference between interest rates on two different investments.

Trade Credit

A business arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date, often used to finance short-term operational needs.

Consumer Credit

A type of credit granted to consumers to finance personal purchases.

Retail Credit

An arrangement where retailers offer direct credit facilities to their customers for the purchase of goods and services.