Suppose that inventory investment is $20 billion and (total)investment is $680 billion.What does purchases of newly produced capital goods equal?
A) $715 billion
B) $785 billion
C) $750 billion
D) $35 billion
E) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

The question asks for the value of purchases of newly produced capital goods, which is typically considered part of total investment. However, the information given only specifies the amount of inventory investment and the total investment. To find the purchases of newly produced capital goods, one would subtract inventory investment from total investment. But none of the provided options match this calculation ($680 billion - $20 billion = $660 billion), which is not listed. Therefore, there is not enough information (or the correct option is not provided) to answer the question based on the options given.

Suppose That Inventory Investment Is $20 Billion and (Total)investment Is