If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:

U.S. capital at the end of 2012 equals U.S. capital at the beginning of 2012 plus

A) gross investment during 2012. B) net investment during 2012. C) nothing, because capital can't change in just one year. D) gross investment during 2012 minus net investment in 2012. E) depreciation during 2012 minus gross investment during 2012.

Which of the following items are considered physical capital?

I. shares of Ford stock traded on the New York Stock Exchange II. the Taco Bell store nearest you III. the rental cars owned by Hertz Rental-A-Car IV. the salaries paid to Intel executives A) II and III B) I and IV C) I, II and III D) I, II and IV