Depreciation is

A. added to GDP to get gross investment.
B. subtracted from net investment to obtain gross investment.
C. the difference between exports and imports.
D. added to NNP to get GNP.

Answer: D

Economics

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The Federal Reserve buying government bonds is considered:

a) easy money. b) tight money. c) expansionary monetary policy. d) contractionary monetary policy.

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For many firms, capital is the production input that is typically fixed in the short run. Which of the following firms would face the longest time required to adjust its capital inputs?

A) Firm that makes DVD players. B) Computer chip fabricator C) Flat-screen TV manufacturer D) Nuclear power plant

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