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Author Question: What is the distinction between gross investment and net investment? What will be an ideal ... (Read 13 times)

mp14

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on: Jun 29, 2018
What is the distinction between gross investment and net investment?
 
  What will be an ideal response?

Question 2

The ________ rate is the interest rate at which the Fed lends ________ to depository institutions.
 
  A) discount rate; reserves
  B) discount rate; gold
  C) federal funds rate; deposits
  D) federal funds rate; reserves


fffftttt

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Gross investment is the total spending on capital goods. Net investment equals gross investment minus depreciation. From one year to the next, the capital stock increases by the amount of net investment.

Answer to Question 2

A


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