A country's capital stock is the ?
Correct answer: C. sum of previous gross investment minus depreciation
- A. approximated investment minus actual investment
- B. inflow of investment from abroad
- C. sum of previous gross investment minus depreciation
- D. difference between GDP and capital consumption
Explanation
Capital stock is accumulated gross investment less the depreciation of existing capital, giving the economy's net stock of productive assets. Foreign investment inflows and the difference between GDP and capital consumption are not complete definitions.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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