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Author Question: A decrease in the demand for U.S. exports ________ the demand for U.S. dollars and shifts the demand ... (Read 150 times)

dollx

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on: Jun 29, 2018
A decrease in the demand for U.S. exports ________ the demand for U.S. dollars and shifts the demand curve for U.S. dollars ________.
 
  A) increases; rightward
  B) decreases; rightward
  C) decreases; leftward
  D) increases; leftward

Question 2

What is the relationship between gross investment, net investment, and depreciation? Which measures the change in the capital stock?
 
  What will be an ideal response?


angrybirds13579

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

C

Answer to Question 2

Gross investment minus depreciation equals net investment. Gross investment is all the investment made during the year. Depreciation is the wear and tear on capital from its use and obsolescence. The depreciation part of gross investment goes to replace old, worn out capital and so net investment is the change in the capital stock.


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