Which one of the following is true?
A)Y = C + I + G + M - X
B)I + G + X = Y + I + M
C)Y = C + S + I
D)Y + M = C + I + G
E)Y = C + I + G + X - M
Which of the following is not correct?
A)Investment is the purchase of new plant, equipment, and buildings and the additions to inventories.
B)Net investment equals gross investment minus depreciation.
C)Depreciation decreases the value of a firm's capital.
D)Gross investment is the amount by which the value of capital increases.
E)Gross investment is the total amount spent buying new capital and replacing depreciated capital.
Suppose the economy's capital increases over the year. It must be true that
A)net investment was greater than gross investment.
B)net investment was positive.
C)depreciation was greater than net investment.
D)depreciation was greater than gross investment.
E)depreciation is less than zero.
SaskWidget produces plastic parts. At the beginning of the year, they held $24 million worth of capital. At the end of the year, they held $20 million worth of capital. One can conclude that
A)net investment increased by $4 million.
B)gross investment decreased by $4 million.
C)gross investment increased by $4 million.
D)depreciation exceeded gross investment by $4 million.
E)depreciation equals $4 million.