Which of the following equations captures the aggregate capital ...

[tingc95]

Which of the following equations captures the aggregate capital stock of the economy in this year, Know?
 
  A) Know = (1 - depreciation rate)  Klastyear + I B) Know = (1 + depreciation rate)  Klastyear + I
  C) Know = (1 - depreciation rate)  Klastyear  I D) Know = (1 - depreciation rate)  Klastyear - I
 
  The depreciation rate of capital in an economy is 10. The investment on capital in the current year is 500.

Question 2

________ occurs when the Fed creates a large amount of reserves to buy long-term bonds from banks.
 
  A) Budgetary surplus B) Monetary neutrality
  C) Money illusion D) Quantitative easing

[IAPPLET]

Answer to Question 1

A

Answer to Question 2

D