Which of the following is a stock variable?
A) business spending on capital equipment
B) consumer income
C) the federal government's debt
D) the federal government's budget deficit

Question

Which of the following is a stock variable?  
A) business spending on capital equipment 
B) consumer income 
C) the federal government's debt 
D) the federal government's budget deficit

Quizplus · Accepted Answer

A stock variable is a quantity measured at a particular point in time, whereas a flow variable is a quantity measured over a duration of time. The federal government's debt is a stock variable because it represents the total amount of money that the government owes at a given point in time, whereas business spending on capital equipment and consumer income are flow variables that represent the amount of money spent or earned over a period of time. The federal government's budget deficit is also a flow variable because it represents the amount of money that the government spends minus the amount of money it receives over a specific period of time.

Which of the Following Is a Stock Variable