Author Question: The difference between the amount of capital at the beginning of a year and the amount of capital at ... (Read 96 times)

fnuegbu · **on:** Jun 29, 2018

The difference between the amount of capital at the beginning of a year and the amount of capital at the end of the year is equal to

A) financial consumption.
B) gross investment.
C) depreciation.
D) capital consumption.
E) net investment.

Question 2

The Fed buys 20,000 of government securities. The desired reserve ratio is 5 percent and the currency drain ratio is zero. What will be the change in the quantity of money?

A) 400,000 B) 20,000 C) 19,000 D) 5,000 E) 399,980