If Gross Investment in 2016 Is $750 Billion and Depreciation

question 21

Multiple Choice

If gross investment in 2016 is $750 billion and depreciation in 2016 is $850 billion, net investment in 2016 is

• A) -$50 billion.
• B) -$100 billion.
• C) -$800 billion.
• D) -$1,600 billion.

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Definitions:

Financial Capital Market

The complex set of institutions in which suppliers of capital (households that save) and the demand for capital (firms wanting to invest) interact.

Institutions

Structures and mechanisms of social order governing the behavior of a set of individuals within a given community, such as legal codes, money, and schools.

Economists

Professionals who study, develop, and apply theories and concepts from economics to analyze how societies utilize scarce resources to produce valuable commodities and distribute them among different people.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal amount.